ANTAM Signs Forex Line Hedging Facility Agreement with Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia
Home News, Reports and Presentations News Releases
Jakarta, May 25, 2016 - PT ANTAM (Persero) Tbk (ANTAM; ASX – ATM; IDX – ANTM) is pleased to announce that it has signed a Forex Line Hedging Facility Agreement with PT Bank Mandiri (Persero) Tbk (Bank Mandiri), PT Bank Rakyat Indonesia (Persero) Tbk (BRI) and PT Bank Negara Indonesia (Persero) Tbk (BNI). As a natural resources based company, ANTAM endeavours to mitigate its risk exposure and potential loss. Under the agreement, ANTAM receives US$20 million facility from Bank Mandiri, US$10 million facility from BRI and US$30 million facility from BNI.
ANTAM’s President Director, Tedy Badrujaman said,
As an export oriented company, ANTAM’s revenue and cash position are mostly in US Dollar while most of ANTAM’s operating expenses are in Indonesia Rupiah. As such, ANTAM is exposed to foreign exchange risks.
In mitigating these risks, ANTAM’s hedging strategy includes conducting hedging transactions through natural hedging, plain vanilla options and forward and cross currency swaps (CCS) options. ANTAM’s hedging policy refers to the Minister of State-owned Enterprises Regulation No. PER-09/MBU/2013 on General Policy of Hedging of State-owned Enterprises, Bank of Indonesia Regulation No. 16/18/PBI/2014 on Hedging Transactions of Banks and Bank of Indonesia Regulation No. 17/15/PBI/2015 on Foreign Exchange to Rupiah Transactions between Banks and Domestic Parties.