Jakarta - PT United Tractors Tbk (UNTR), through its subsidiary PT Pamapersada Nusantara (PAMA), provided a loan of US$40 million or equivalent to Rp564.2 billion to PT Suprabari Mapanindo Mineral (SMM).

United Tractors Tbk Corporate Secretary Sara K Loebis said the loan agreement was signed on August 23, 2021. This revolving loan has a five-year loan period and an interest rate of +2% LIBOR.

"The loan will be used for SMM's working capital," she said in her statement on Thursday (26/8).

According to Sara, PAMA chose to do this transaction with SMM because it is still affiliated with PAMA.

"This transaction can help SMM's operational activities as well as be profitable for PAMA. This is because PAMA earns interest income from lending rather than saving in deposits," she explained.

SMM is an indirect subsidiary of PAMA and United Tractors. PAMA owns a 72.01% stake in SMM, while United Tractors owns 27.99%.<