ICBC Indonesia contributes IDR 500 billion to syndicated loan for the Pejagan Pemalang Toll Road Project in 2016

Project narrative

On November 30, 2016, the Industrial and Commercial Bank of China (ICBC) signed an IDR 4,728,657,000,000 syndicated loan agreement with PT Waskita Toll Road (WTR) — a special purpose vehicle and a wholly-owned subsidiary of PT Waskita Karya Tbk (Waskita Karya), an Indonesian state-owned construction company — for the Pejagan Pemalang Toll Road Project. The members of the loan syndicate included ICBC Indonesia, Bank Panin, Bank Artha Graha, Indonesia Eximbank, Bank Sumut, Bank Jateng, Bank Sulselbar, Bank Nagari, Bank Kalteng, Bank DIY, Bank Maluku Malut, Bank BPD Jambi, PT Bank Negara Indonesia (Persero), and PT Sarana Multi Infrastruktur (Persero) (“PT SMI”). ICBC Indonesia contributed IDR 500 billion to the syndicated loan, which carried a 12-year maturity, a grace period of 36 months (from the signing of the loan agreement or no later than six months from the date of the overall operation of the Pejagan Pemalang Toll Road Project), and a weighted average interest rate based on the Reference Rate (LPS) plus margin (or equivalent to 10.75% per annum). The loan was secured by (collateralized with) Waskita Karya's concession right based on the Pejagan-Pemalang Toll Road Concession Agreement, all invoices and operating revenue from the operation of Toll Roads and other business ventures related to the toll road, an escrow account to be established, including the Construction Account, Collection Account, Debt Service Reserve Account, Debt Service Account, Operational Account and the Excess Cash Account, and claims on income from Insurance Claim, Bank Guarantee Claim, and Replacement Funds tied to fiduciary funds from the Indonesian Government. The purpose of this project was to construct a 57.5 km toll road that connects Pejagan, Brebes, and Pemalang in Central Java. The toll road is divided into four sections and is a continuation of the Kanci-Pejagan toll road and part of the Trans-Java toll road. Construction started on July 23, 2014, and on June 13, 2016, Sections I and II of the road were inaugurated. On November 9, 2018, Sections III and IV of the road were inaugurated and the road was officially completed.