Narrative
Full Description
Project narrative
On September 11, 2023, PT Dexin Steel Indonesia (德信钢铁 or 德信钢铁有限公司) — a special purpose vehicle and joint venture between Delong Steel Singapore Projects Pte Ltd [45% ownership stake], Shanghai Decent Investment Group Co Ltd [43% ownership stake], and Indonesia Morowali Industrial Park PT [12% ownership stake] — signed a $250 million export credit facility agreement with a group of Chinese and non-Chinese banks for the Dexin Morowali Steel Plant Third Blast Furnace Project. Participants in the syndicate included Bank Sinarmas, BNP Paribas, Bank of China, China Construction Bank (CCB), China Everbright Bank, KEB Hana Bank, National Bank of Kuwait, OCBC Bank, Shanghai Pudong Development Bank, Shanghai Rural Commercial Bank, China CITIC Bank Corporation Limited, and Société Générale. The loan's maturity is 6 years and 11 months. Its other borrowing terms are unknown. The purpose of the project is to help PT Dexin Steel Indonesia expand the steel production capacity from 3.5 million tons per annum (mtpa) to 7mtpa in Morowali Industrial Park within Central Sulawesi Province. Construction commenced on September 21, 2023. This facility is one of three in a $700 million debt package for this project. The other facilities include: (1) a revolving credit facility for $100 million provided by Bank Central Asia, Bank Mayapada, BNP Paribas, OCBC Bank, Société Générale, and Bank Mandiri and (2) a $350 loan provided by Indonesia Eximbank, Bank Central Asia, Bank Mayapada, BNP Paribas, China Construction Bank, China Minsheng Bank, ICBC, OCBC Bank, Shanghai Pudong Development Bank, Société Générale, and Bank Mandiri.