JAKARTA, RAKYAT NEWS – The giant mining PT Bayan Resources Tbk (BYAN), a major coal mining company owned by conglomerate Low Tuck Kwong, has secured a credit facility amounting to $125 million (around IDR 2 trillion) from Bank Mega.

This loan will be used for the company’s working capital and operational activities. The loan agreement was signed on December 13, 2024, and includes both a demand loan facility and a sublimit for Bank Guarantees/Standby Letters of Credit, with the latter totaling $25 million.

The loan, with a term of 36 months, is secured by company guarantees provided by PT Bara Tabang, a subsidiary of Bayan Resources. This financing arrangement will support the company’s operations and those of its subsidiaries, ensuring the necessary capital for continued business activities.

In its official statement, Bayan Resources confirmed that the loan does not have a material impact on the company’s operations and is part of its efforts to strengthen its financial position despite recent challenges. The company’s financial performance has been under pressure, as evidenced by a 48% drop in its net income during the first half of 2024, amounting to $376.76 million compared to $725.85 million in the same period in 2023.

Additionally, Bayan’s revenues for the first half of 2024 decreased by 25%, totaling $1.53 billion, compared to $2.03 billion in the previous year. Sales to third-party buyers were down by 27%, while sales to related parties saw a 25% increase. The company has been working to navigate through these financial difficulties, leveraging the credit facility to ensure that its operations continue smoothly.

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