Narrative
Full Description
Project narrative
On December 23, 2022, PT Perusahaan Listrik Negara (Persero) (PLN) — an Indonesian state-owned power company — signed a $750 million syndicated loan agreement (with green shoe option) with eight mandated lead arrangers and bookrunners (MLABs): Bank of China (BOC), China Construction Bank Corporation (CCB), CIMB Bank, DBS Bank, Mizuho Bank, Oversea-Chinese Banking Corporation (OCBC), Sumitomo Mitsui Banking Corporation (SMBC), and United Overseas Bank (UOB). Then, on April 6, 2023, 24 additional lenders — Taiwan Business Bank, KB Bukopin, Chang Hwa Commercial Bank, Norinchukin Bank, Gunma Bank, Taiwan Cooperative Bank, Mega International Commercial Bank Co, E.Sun Commercial Bank, Export-Import Bank of Republic of China, Hyakugo Bank, Chugoku Bank, Bank of Kaohsiung, Land Bank of Taiwan, Hua Nan Commercial Bank, Bank of the Philippine Islands, Bank of Taiwan, Citibank, Chiba Bank, AfrAsia Bank, First Commercial Bank, SBI Shinsei Bank, Bank SBI Indonesia, CTBC Bank, and KEB Hana Bank — joined the facility agreement in general syndication. The loan carries a 5-year maturity an an interest rate of SOFR plus a 0.9% margin for offshore lenders and a 5-year maturity an an interest rate of SOFR plus a 1.0% margin for onshore lenders. The borrower is expected to use the proceeds of the loan to finance solar, wind, and other renewable energy projects.
Staff comments
1. The individual financial contributions of the members of the syndicate are unknown. For the time being, AidData assumes equal contributions ($23,437,500) across the 32 known members of the syndicate. 2. Norton Rose Fulbright served as a legal adviser to the lenders and Baker McKenzie served a legal adviser to the borrower. 3. AidData has estimated the all-in interest rate by adding 0.9% to average SOFR in December 2022 (4.07%). 4. The MLABs were expected to down sell 30% of their holds to other lenders joining in the loan. However, the loan received an overwhelming response, resulting in all but 2 MLABs selling more than 50% of their committed amount in general syndication.