PETALING JAYA: Lotte Chemical Titan Holding Bhd's (LCT) 51% owned subsidiary, PT Lotte Chemical Indonesia (LCI), has accepted a loan of KRW451.74bil (about RM1.2bil) from Lotte Chemical Corp (LCC).
LCC owns 24% of cash strapped LCI. In a filing with Bursa Malaysia, LCT noted the loan runs until Dec 20, 2036, with repayment scheduled over six years starting in 2031 after a five-year grace period.
The interest rate is set at a one-year secured overnight financing rate + 1.45%. The funds will be used to repay existing borrowings, including Export Credit Agency loans, and to support liquidity management.
Importantly, the loan is not classified as a related party transaction under Bursa Malaysia’s guidelines. LCT noted the borrowing will not materially affect its earnings per share, gearing, share capital, or net tangible assets for the financial year ending Dec 31, 2026.