ANTM - Secures USD500 mn credit facility

ANTM - Secures USD500 mn credit facility Aneka Tambang (ANTM) has signed a credit facility agreement of up to USD500 mn with a consortium of banks, including DBS Bank Ltd., MUFG Bank, Ltd., Bank SMBC Indonesia (via BTPN), Sumitomo Mitsui Banking Corporation, and United Overseas Bank Limited. The facility will be used to support the company’s general corporate purposes, including but not limited to capital expenditures, acquisitions, and working capital needs. (Source : Company) Comment : The USD500 mn loan supports ANTAM’s 5-year capex plan (~USD723 mn), focused on exploration and downstream projects. While current leverage is manageable (1.77x), with the additional debt could rising to ~3.6x. FCF-to-debt at ~8.5% signals decent repayment capacity.