Jakarta – State-owned steelmaker Krakatau Steel recently announced that it has repaid the tranche B debt of Rp 2.7 trillion to three state banks, namely Mandiri, BRI, and BNI.
With this repayment, Krakatau Steel (KRAS) has completed its working capital bridging loan facility worth $200 million to the three aforementioned banks.
"As stipulated in the loan restructuring agreement, Krakatau Steel has paid off the $200 million-worth outstanding credit facility due in December 2021," the steelmaker's finance director Tardi said.
In January 2020, Krakatau Steel inked a restructuring agreement. Since the signing, the steelmaker has paid off $30.4 million (Rp 437 billion) worth of debt. This includes tranche A of $17.4 million (Rp 250 billion) and debt installments of $13 million (Rp 187 billion) to German lender Commerzbank.
Krakatau Steel's loan repayment in 2021 totaled Rp 3.2 trillion.
"The debt repayment came from the company's internal cash flow from Krakatau Steel's performance that has been improving since the restructuring," Tardi said.
The steelmaker booked a profit of Rp 1.06 trillion as of November. Its revenue also stood at Rp 30 trillion this November or soared 66.8 percent compared to the same period last year.
The company realized an earnings before interest, tax, depreciation, and amortization (EBITDA) of Rp 2.2 trillion in November. This is a 105 percent jump compared to the EBITDA recorded in the same period last year.
Tardi hoped that Krakatau Steel's performance as of November 2021 would return the public, creditors, and vendors' trust towards the company's improving performance.
"We also believe that we will book a profit again in 2021, even higher than that of 2020," Tardi said.