Wintermar Offshore Marine Provides Corporate Guarantee to Bank Mandiri

Financial Arrangement Supports Joint Venture Operations

PT Wintermar Offshore Marine Tbk (WINS), an Indonesian shipping company, has provided a corporate guarantee and deficit cash flow guarantee amounting to US$3.2 million to PT Bank Mandiri Tbk (BMRI). According to Nely Layanto, Director and Secretary of Wintermar Offshore Marine, this guarantee is a requirement for the credit facilities extended by Bank Mandiri to one of WINS's joint venture companies.

The guarantee amount was determined proportionally based on WINS's shareholding percentage in the joint venture. This financial arrangement demonstrates WINS's commitment to supporting its business operations through strategic financial management. The provision of such guarantees is a common practice in corporate financing, particularly when parent companies support their subsidiaries or joint ventures in securing credit facilities from banks.

Significance for Wintermar Offshore Marine

This transaction highlights WINS's active management of its financial obligations and its commitment to supporting its business ventures. By providing the guarantee, WINS enables its joint venture to access necessary funding from Bank Mandiri, potentially enhancing the joint venture's operational capacity and business prospects.

Impact on Stakeholders

The provision of the guarantee may be viewed positively by investors as it indicates WINS's proactive approach to managing its financial commitments and supporting its business operations. However, it also represents a contingent liability for WINS, as the company may be required to honor the guarantee if the joint venture defaults on its obligations to Bank Mandiri.