Bank of China (Hong Kong) contributes USD 25 million to USD 700 million syndicated loan facility to PT SMI for financing infrastructure projects

Two Bank of China Hong Kong branches contribute USD 50 million to USD 700 million syndicated loan facility to PT SMI for financing infrastructure projects On September 8, 2020, a group of banks -- including two Bank of China Hong Kong branches: BOC HK and BOC HK, Jakarta branch -- signed an agreement for a USD 700 million syndicated loan facility with PT Sarana Multi Infrastruktur (Persero) (PT SMI), a special mission vehicle under the Indonesian Ministry of Finance responsible for financing and preparing infrastructure projects.

The facility holds a maturity of three years and carries an interest rate of LIBOR plus an unspecified annual margin. Proceeds from the facility will be used to finance infrastructure projects initiated by PT SMI.

The facility contains certain financial covenants that must be followed: PT SMI must maintain a debt to equity ratio of a maximum of three times, and the Government of the Republic of Indonesia must maintain a 51% share of ownership in PT SMI. As of December 31, 2020, USD 361.27 million of the loan's balance was outstanding.

Bank of China (Hong Kong) contributed USD 25 million to the facility, with the bank's Jakarta branch contributing an additional USD 25 million, for a total contribution of USD 50 million from Bank of China (Hong Kong) Limited. The infrastructure projects financed under the facility are unknown. A total of 27 banks participated in the syndicated facility.

MUFG Bank, Ltd. acted as the Mandated Lead Arranger & Bookrunner with a contribution of $60,000,000.

The Arrangers included United Overseas Bank Limited with a contribution of $108,000,000, CTBC Bank Co., Ltd. with $50,000,000, State Bank of India, Hong Kong Branch with $50,000,000, Standard Chartered Bank (Singapore) Limited with $37,000,000, Bank of Taiwan, Singapore Branch with $30,000,000, First Commercial Bank, Ltd.

Singapore Branch with $30,000,000, Shinsei Bank, Limited with $30,000,000, The Bank of Yokohama, Ltd. with $30,000,000, Bank of China (Hong Kong) Limited with $25,000,000, Bank of China (Hong Kong) Limited, Jakarta Branch with $25,000,000, Chang Hwa Commercial Bank, Ltd., Offshore Banking Branch with $20,000,000, Hua Nan Commercial Bank, Ltd., Offshore Banking Branch with $20,000,000, Land Bank of Taiwan, Offshore Banking Branch with $20,000,000, Taipei Fubon Commercial Bank Co., Ltd. with $20,000,000, Taiwan Business Bank., Offshore Banking Branch with $20,000,000, The Korea Development Bank with $20,000,000, The Korea Development Bank, Singapore Branch with $20,000,000, Taiwan Shin Kong Commercial Bank Co., Ltd. with $15,000,000, Lotte F&L Singapore Pte.

Ltd. with $10,000,000, PT Bank SBI Indonesia with $10,000,000, Sunny Bank, Ltd. with $10,000,000, Taishin International Bank with $10,000,000, Taiwan Cooperative Bank, Offshore Banking Branch with $10,000,000, The 77 Bank, Ltd. with $10,000,000, PT Bank Shinhan Indonesia with $5,000,000, and Bank of Kaohsiung, Offshore Banking Branch with $5,000,000.