CNGR Advanced Material (HKG:2579, SHE:300919) plans to provide up to $6.8 million, or the equivalent in yuan, to its Indonesian associate PT Sinerai Setia Pratiwi, according to a Tuesday Hong Kong bourse filing.
The loan will carry an interest rate of no more than 10% and have a term of up to 12 months, with the facility available for revolving use during the term of the agreement.
The proposal is subject to shareholder approval.
CNGR holds a 34% stake in SSP through its wholly owned subsidiary Hongkong Growthway New Energy.
The financial support will be used for the associate's working capital and operational needs, including coal quality inspection and source quality control.