CDB provides RMB 553 million loan to Indah Kiat Pulp & Paper Factory
Commitment amount
$ 105208070.82160714
Adjusted commitment amount
$ 105208070.82
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Indonesia
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
On April 25, 2011, China Development Bank (CDB) and PT Indah Kiat Pulp & Paper Tbk — a subsidiary of Asia Pulp & Paper (APP), which is itself a subsidiary of Sinar Mas Group (or Sinarmas Group) — signed an RMB 553 million ($85.1 million) investment credit facility agreement to support a pulp and paper factory in the city of Tangerang within Banten Province. The loan was secured by (collateralized with) a power plant owned by the borrower (PT Indah Kiat Pulp & Paper Tbk). PT Purinusa Ekapersad — the parent company of PT Indah Kiat Pulp & Paper Tbk and a part of Sinar Mas Group — also issued a corporate guarantee in support of the loan. The loan carried a 7 year maturity, but its interest rate is unknown. As of December 31, 2012, the outstanding balance of the loan from CDB amounted to $73.4 million. As of March 31, 2013, the outstanding balance of the loan was $72.8 million. As of June 30, 2017, the outstanding balance of the loan was $14.7 million.
Number of official sources
5
Number of total sources
6
Details
Cofinanced
No
Direct receiving agencies [Type]
PT Indah Kiat Pulp & Paper Tbk [Joint Venture/Special Purpose Vehicle]
Implementing agencies [Type]
PT Indah Kiat Pulp & Paper Tbk [Joint Venture/Special Purpose Vehicle]
Guarantee provider [Type]
PT Purinusa Ekapersada [Private Sector]
Collateral provider [Type]
PT Indah Kiat Pulp & Paper Tbk [Joint Venture/Special Purpose Vehicle]
Collateral
A power plant owned by the borrower (PT Indah Kiat Pulp & Paper Tbk)
Loan Details
Maturity
7 years