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China Construction Bank contributes to $700 million syndicated loan to PT SMI for refinancing, general corporate, and capex purposes in September 2023
| Funder | China Construction Bank Corporation (CCB) |
|---|---|
| Recipient Organization | PT Sarana Multi Infrastruktur (Persero) (PT SMI) |
| Country | Indonesia |
| Start Date | Aug 31, 2023 |
| End Date | Apr 22, 2033 |
| Duration | 3,522 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 108294 |
Grant Description
BOC, China Construction Bank, ABC contribute to $700 million syndicated loan with PT SMI in Indonesia 2023 On August 31, 2023, PT Sarana Multi Infrastruktur (Persero) [PT SMI] — an Indonesia state-owned enterprise — signed a $700 million sustainability-linked, syndicated term loan facility agreement with a group of banks for (a) refinancing purposes, and, if there are remaining funds, for (b) general corporate purposes, and (c) to fulfill new financing needs primarily for sustainable infrastructure projects in Indonesia, which was expected to further strengthen the asset liability management of the company (borrowing institution).
The facility included a 3-year tranche (Tranche A) and a 5-year tranche (Tranche B). Both tranches carry an interest rates of SOFR plus unspecified margins.
The sustainability-linked facility features concrete performance targets that are in line with PT SMI's commitment to Environmental Social Governance (ESG).
The key performance indicators (KPIs) include (1) growing the sustainability financing portfolio and; (2) increasingly the number of employees undertaking ESG-related trainings.
The transaction was supported by several Mandated Lead Arrangers & Bookrunners (MLABs) — namely, Bank of China (Hong Kong), CTBC Bank Co., Ltd., DBS Bank, Mizuho Bank, MUFG Bank Ltd, and United Overseas Bank (UOB). UOB also acted as the MLABs' Coordinator and the overall Sustainability Coordinator for the transaction.
PT SMI engaged Environmental Resources Management (ERM) as the second party opinion provider, to provide a review on the KPI and Sustainability Performance Targets (SPT) for the transaction.
Chinese bank contributions to the syndicated loan included a $50 million contribution from Bank of China (Hong Kong) Limited and the Jakarta Branch of Bank of China (Hong Kong) Limited, a $16 million contribution from the Singapore Branch of Agricultural Bank of China Limited, Bank of China, and an $18 million contribution from China Construction Bank.
Staff Comments
1. The estimated maturity of the loan (4-years) is based on the average maturities of Tranches A and B.
Sources & References
- PT SMI successfully obtained the offshore Sustainability-Linked Syndicated Term Loan Facility worth USD 700 million
- PT SMI Receives USD700 Million Green Syndicated Loan From 6 Countries
- PT SMI successfully obtained the offshore Sustainability-linked Syndicated Term Loan Facility worth USD 700 million
- PT SMI Notes to the Financial Statements for the years ended 2023 and 2022 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
PT Sarana Multi Infrastruktur (Persero) (PT SMI)
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