SMN Group sustainability update: SMN Group closes refinancing of STP debt at favorable terms
Tower · Wednesday, 8 December 2021 01:41
The Management of SMN and STP is pleased to announce today the successful refinancing of STP’s debt of Rp 6.9 trillion. As a result of the refinancing, STP reduced its average interest rate on its debt from approximately 10% per annum to 4.7%. As part of the closing, STP also unwound 10 derivatives contracts, receiving a net gain. The new debt is entirely in Rupiah.
“We are happy with this financial close to refinance STP debt with Protelindo’s more efficient borrowing terms, capitalizing its position with strong investment grade ratings in line with best global practices. We expect this as first of many attempts by our management to integrate and synergize STP with Protelindo’s standard of operations. We will also continuously review financial policies and strategies including expiration profile and portion of our borrowing that is fixed rates versus floating,” said Aming Santoso, CEO of SMN Group.