CNGR (02579) has announced its intention to provide financial support to its associate company, PT Sinerai Setia Pratiwi (SSP), by extending a loan of up to US$6.8 million, or the equivalent in Renminbi, based on its 34% equity stake. The move aligns with the company's strategy to strengthen its integrated industry chain layout.

According to the company announcement, the loan is designed to safeguard the normal production and operations of SSP while reinforcing coal quality inspection and source control measures. Shareholders of SSP will provide funding support in proportion to their respective shareholdings, with the loan facility carrying a term of no more than 12 months and an interest rate capped at 10%. The credit facility can be utilized on a revolving basis within the validity period of the agreement.

The financial assistance targets the company's associate, with all shareholders contributing proportionally based on their equity interests. Given SSP's solid performance capabilities and the fair and reasonable interest rate terms, the overall risk associated with this financial assistance is considered manageable. The company emphasized that the arrangement does not harm the interests of the company or its shareholders, particularly minority shareholders.