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Overview

China Construction Bank provides IDR 250 billion loan to PT Permodalan Nasional Madani for working capital and on-lending purposes

Commitments (Constant USD, 2023)$16,124,560
Commitment Year•2021Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 23, 2021
Last repayment (originally scheduled)
Jun 23, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Receiving agencies

State-owned Banks

  • PT Permodalan Nasional Madani (Persero) (PNM)

Implementing agencies

State-owned Banks

  • PT Permodalan Nasional Madani (Persero) (PNM)

Loan description

China Construction Bank provides IDR 250 billion loan to PT Permodalan Nasional Madani for working capital and on-lending purposes

Grant element•0.2402%Interest rate (t₀)•9.25%Interest type•Fixed Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On June 23, 2021, PT Bank China Construction Bank Indonesia Tbk entered into an IDR 250,000,000,000 Working Capital Credit Facility agreement with PT Permodalan Nasional Madani (Persero) (PNM) — an Indonesian state-owned microfinancing company and subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk, an Indonesian state-owned bank — for working capital and on-lending purposes. This loan carried an interest rate of 9.25% per annum and a maturity period of 12 months and installment tenor of 12 months. The proceeds were to be used by the borrower as additional working capital for on-lending to Micro, Small and Medium Enterprises (MSMEs). As of December 31, 2022, the loan had been repaid.

Staff comments

1. BRI is the oldest bank in Indonesia, tracing back since 1895. It is currently 53% government owned operating company (Persero) and has been government-owned for the entire period since the war of independence (1945 to 1949) to November 2003, when 30% of its shares were sold through an IPO.