Merdeka Battery Materials Amends Significant Financing Agreement

Revised Terms of Mudharabah Financing

PT Merdeka Battery Materials Tbk (MBMA) has announced a significant amendment to its existing financing agreement, valued at US$108.51 million. The original mudharabah financing agreement was established on August 28, 2025, between MBMA and PT Merdeka Tsingshan Indonesia (MTI). As disclosed in the company's latest information release to the Indonesia Stock Exchange (BEI) on January 2, 2026, the amendment modifies key terms of the financing arrangement.

Key Changes in Financing Terms

The revised agreement introduces several important changes:

1. Revised Profit-Sharing Ratio: The profit-sharing ratio allocated to MBMA from MTI's business activities has been adjusted to 23% of revenue.
2. Return Indication: The projected return on the financing is now indicated to be equivalent to 3-month Term SOFR + 5.26% per annum.
3. Currency Provisions: Additional clauses related to currency have been incorporated into the agreement.

Business Implications

The amended financing agreement is significant for MBMA's financial arrangements with its related entity, MTI. The changes reflect strategic adjustments in the financial structuring between the two entities, potentially impacting MBMA's financial performance and investment capacity. The use of mudharabah financing, an Islamic finance principle, demonstrates MBMA's commitment to Sharia-compliant financial instruments.