Overview

China Construction Bank provides IDR 315 billion loan to PT Permodalan Nasional Madani for working capital and on-lending purposes (January 2023)

Commitments (Constant USD, 2023)$20,674,487

Commitment Year•2023Country 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: Jan 4, 2023

Last repayment (originally scheduled): Jan 4, 2024

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 315 billion loan to PT Permodalan Nasional Madani for working capital and on-lending purposes (January 2023)

Grant element•1.7655%Interest rate (t₀)•6%Interest type•Fixed Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On January 4th, 2023, PT Bank China Construction Bank Indonesia Tbk entered into an IDR 315 billion 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 a maturity period of 12 months (final maturity: January 4, 2024) and an 6% interest rate. The borrower was required to maintain the following financial covenants: maintain a quality of collateral coverage ratio of at least 100%, maintain a gearing ratio of a maximum of 8x, and maintain a non-performing loan Mekaar maximum of 3%. The proceeds were to be used by the borrower as additional working capital for on-lending to Micro, Small and Medium Enterprises (MSMEs).