PT Merdeka Battery Materials (MBMA) has secured a fresh fund of US$ 490 million through a loan facility. The funds, which will be allocated to its subsidiary ESG New Energy Material, are sourced from Bangkok Bank Public Company Limited, Bank Mandiri, and Bank BNI.
MBMA, established in 2019, is a subsidiary of Merdeka Copper Gold, an Indonesian gold, silver, copper and other minerals producer. The company focuses on nickel mining industry as a raw material for electric vehicle (EV) battery production. The mining locations are situated in provinces of Central Sulawesi and Southeast Sulawesi.
In addition to mining, the company also operates a Rotary Kiln Electric Furnace (RKEF) smelter unit, AIM (Acid, Iron, Metal) processing facilities, and an ongoing High-Pressure Acid Leach (HPAL) plant project.
The loan will be utilized for various purposes, including design, engineering, construction, operation, ownership of the MHP plant, and equity participation in the Feed Preparation Plant (FPP) company.
The loan incurs interest based on the Secured Overnight Financing Rate (SOFR) forward rate. The loan duration is 84 months or 7 years, with collateral secured against several assets owned by ESG, including mortgages, pledge of accounts, chattel mortgages, plant facilities, and receivables.
The loan agreement aims to support project funding, including capital expenditure, construction, procurement, production, completion, testing, commissioning, and factory permit acquisition. It is expected that this funding will enhance the company’s performance and positively impact shareholders.
