Lotte Chemical Titan Holding Berhad (LCT) announced that its 51%-owned subsidiary, PT Lotte Chemical Indonesia (LCI), has secured a KRW451.74 billion (approximately RM1.2 billion) cash loan from major shareholder Lotte Chemical Corporation (LCC).
The loan, accepted on 12 June 2026, is intended to support LCI’s repayment of existing facility borrowings, including Export Credit Agency (ECA) loans, as well as for general liquidity management purposes.
Under the agreement, the facility will run until 20 December 2036, with repayments structured in instalments over six years beginning from 2031, following a five-year grace period.
The loan carries an interest rate of one-year Secured Overnight Financing Rate (SOFR) plus 1.45%.
LCT said the financing arrangement is not expected to have any material impact on its earnings per share, gearing, share capital or net tangible assets for the financial year ending 31 December 2026.
LCI is jointly owned by LCT and LCC, which hold 51% and 24% equity interests respectively, while the remaining 25% is held by securities companies.
LCT clarified that the loan does not fall under the definition of a related party transaction pursuant to Item 10.3 of the Frequently Asked Questions under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
The company said the funding arrangement is part of LCI’s financial management strategy to strengthen its balance sheet position and support ongoing operational requirements.
