PT Saranacentral Bajatama Tbk (BAJA) plans to increase its capital by granting rights issues of a maximum of 610 million new shares.

Based on IDX's information disclosure on Tuesday (29/6), based on a binding agreement between the company and its shareholders, PT Sarana Steel (an affiliated company) agreed to receive several Preemptive Rights and act as standby buyers, and compensate the company for its claim rights.

PT Sarana Steel has claim rights against the company in the principal amount of the loan amounting to US$20.6 million or equivalent to Rp300.183 billion. The loan interest is 2% and matures on October 3, 2021.

The compensation plan for Sarana Steel's claim rights in the rights issue I plan is to reduce the financial burden and foreign exchange differences in the company's financial statements.

With a decrease in financial costs, it is expected to increase net profit and reduce interest costs, leading to the compan