On June 26, 2023, the Company, EMU, and Smartel signed Amendment I of Guarantee Compensation Agreement to participate in underwriting the shares again, which were originally guaranteed to CDB to be guaranteed to Syndicated Creditors. For the Guarantee of Shares to the Syndicated Creditors, the Company and EMU receive compensation in the form of Guarantee Compensation.
This Share Guarantee was carried out to assist Smartfren and Smartel in obtaining a Syndicated Credit Facility which will primarily be used to refinance CDB credit facilities provided in foreign currencies, fund Smartfren and/or Smartel's capital expenditures in developing telecommunication networks, as well as to reduce foreign exchange expense risk.
With this telecommunication network development plan, it is hoped that Smartfren and Smartel can continue to grow and provide added value to the Company and EMU as Smartfren shareholders, and can support the Company's strategic plan to develop a digital ecosystem. Regarding the Guarantee of Shares to the Syndicated Creditors, the Company and EMU receive compensation in the form of Guarantee Compensation as long as the Guarantee of Shares to the Syndicated Creditors takes place.
Information Disclosure in relation to the share guarantee is as attached.