Bank Mandiri says Jhonlin loan was for business needs, not share trading
The bank said shares in JARR and PGUN formed part of the collateral, with pledged shares treated as a secondary repayment source.
PT Bank Mandiri (Persero) Tbk. (BMRI) has told the Indonesia Stock Exchange (BEI) that its lending to PT Jhonlin Baratama was intended to support business development rather than share trading. The bank said the financing covered capital expenditure and funding needs across the company and its group’s coal and supporting businesses.
The explanation followed questions from BEI amid circulating claims that the loan had funded purchases of PT Bayan Resources Tbk (BYAN) shares. Those claims linked the financing to pledged shares in PT Jhonlin Agro Raya Tbk (JARR) and PT Pradiksi Gunatama Tbk (PGUN).
In its exchange disclosure, Mandiri said the collateral included fixed and non-fixed assets, company accounts and shares in JARR and PGUN, both affiliates of Jhonlin Baratama. It said it valued the additional share collateral conservatively and in accordance with Article 4 of POJK 40 Tahun 2017 and internal policies.
Mandiri said its credit assessment considered business prospects, performance and repayment capacity, the three credit-quality pillars set by the Financial Services Authority (OJK). It also considered Jhonlin Baratama’s EBITDA generation, potential dividends from subsidiaries, existing Jhonlin Group business with the bank and future business opportunities. The bank said it would continue reviewing credit quality periodically.
BEI cited rules barring banks from financing share trading by individuals or companies that are not securities firms, while allowing listed shares as additional collateral. Under those rules, collateral shares may be valued at no more than 50 per cent of their market price when the credit agreement is signed. The exchange also flagged the high concentration of PGUN share ownership.
