Geo Energy has secured term loan facilities worth US$275 million ($354.55 million) from Bank Mandiri for refinancing its existing loan facilities, and upcoming proposed acquisitions.
The group previously signed a US$220 million term loan with Bank Mandiri on Sept 22, 2023 which was used for the acquisition of Golden Eagle Energy which owns the Triaryani (TRA) coal mine, and Marga Bara Jaya which owns the integrated infrastructure currently under construction.
This new financing will create interest savings of about 1.5% per annum (p.a.) from the initial 8.25% p.a. to around 6.7% p.a., says Geo Energy.
The new term loan facility is 60 months from Sept 29. Besides the US$200 million which will be used for refinancing the existing loan; around US$55 million will be used for operational and capital expenditure for the accelerated expansion of its TRA coal mine.
The aim of Geo Energy is to boost the production capacity of the TRA coal mine up to 25 million tons per annum over the next couple of years after the completion of MBJ’s integrated infrastructure targeted by June 2026.
Finally, about US$20 million will be used for the group’s proposed strategic acquisition of the established shipping companies that specialised in logistics transportation of commodities.
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Shares in Geo Energy closed 1.5 cents higher or 3.261% up at 47.5 cents on Sept 29.
