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Overview

PT Bank ICBC Indonesia Provides USD 2.5 Million Pre-Export Financing Facility to Intertrend, Indonesia

Commitments (Constant USD, 2023)$2,563,883
Commitment Year•2014Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaOverseas Jurisdiction•IndonesiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2014
Start (actual)
Jan 1, 2014
End (planned)
Sep 26, 2017
End (actual)
Mar 2, 2017
Last repayment (originally scheduled)
Dec 31, 2016

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

  • PT Bank ICBC Indonesia

Receiving agencies

Private Sector

  • PT Intertrend Indonesia

Collateral providers

Private Sector

  • PT Intertrend Indonesia

Loan description

PT Bank ICBC Indonesia Provides USD 2.5 Million Pre-Export Financing Facility to Intertrend, Indonesia

Grant element•5.2465%Interest rate (t₀)•5.8%Interest type•Fixed Interest RateMaturity•3 years

Collateral

The facility was collateralized using specific Intertrend inventories and trade receivables.

Narrative

Full Description

Project narrative

In 2014, PT Intertrend Indonesia — a majority-owned subsidiary of PT Integra Indocabinet Tbk, an Indonesian wood manufacturing company — secured a pre-export financing facility from PT Bank ICBC Indonesia valued at USD 2.5 million. The facility was structured as a non-LC (Letter of Credit) loan with a final maturity date of September 26, 2017. The loan carried annual interest rates of 5.8% for USD-denominated loans and 12.8% for IDR-denominated loans (as of 2016). It was collateralized by specific Intertrend inventories and trade receivables, and further supported by personal guarantees from Halim Rusli, Hendro Rusli, and Widjaja Karli. Loan covenants restricted Intertrend’s ability to distribute dividends, pledge assets, extend loans outside of normal operations, and required the company to maintain certain financial ratios, including a minimum current ratio of 1.0, a maximum gearing ratio of 1.25×, and a minimum interest service coverage ratio of 1.0. Although originally scheduled to mature in September 2017, the facility was fully repaid early on March 2, 2017, using proceeds from a working capital credit facility and term loan provided by PT Bank Negara Indonesia (BNI).

Staff comments

1. PT Intertrend Indonesia manufactures garden furniture products out of teak log, as well as acacia, bangkirai and nyatoh woods in order to supply overseas market. Its products are exported mainly to Europe (mainly France and UK), as well as Taiwan and mainland China.