Overview

China Construction Bank provides IDR 315 billion loan to PT Permodalan Nasional Madani for unspecified purposes (May 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: May 30, 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)

Loan description

China Construction Bank provides IDR 315 billion loan to PT Permodalan Nasional Madani for unspecified purposes (May 2023)

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

Narrative

Full Description

Project narrative

On May 30, 2023, PT Bank China Construction Bank Indonesia Tbk entered into an IDR 315 billion installment loan facility 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 unspecified purposes. This loan carried a maturity period of 12 months and a 6% interest rate. The borrower was required to adhere to 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%.

Staff comments

1. PT Bank Rakyat Indonesia (Persero) Tbk's 2023 Annual Financial statements both list the loan's maturity as 12 months and the maturity date as January 4, 2024 (i.e. only about 7 months after the loan start date on May 30, 2023). This discrepancy warrants further investigation.