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 $350 million facility (loan) 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 Shanghai Pudong Development Bank Co., Ltd., Indonesia Eximbank, Bank Central Asia, Bank Mayapada, BNP Paribas, China Construction Bank, ICBC, OCBC Bank, China Minsheng Bank, Société Générale, and Bank Mandiri. The loan's maturity is 4 years and 10 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. 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 $250 export credit facility provided by Bank Sinarmas, BNP Paribas, China CITIC Bank, China Construction Bank, China Everbright Bank, KEB Hana Bank, National Bank of Kuwait, OCBC Bank, Shanghai Pudong Development Bank, Bank of China, Société Générale, and Shanghai Rural Commercial Bank.