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Overview

CDB provides RMB 553 million loan to Indah Kiat Pulp & Paper Factory

Commitments (Constant USD, 2023)$97,219,773
Commitment Year•2011Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 25, 2011
Last repayment (originally scheduled)
Dec 30, 2017

Geospatial footprint

Map overview

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The purpose of this project was to support a pulp and paper factory in the city of Tangerang within Banten Province. More detailed locational information can be found at https://www.openstreetmap.org/way/446470545

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 Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • PT Indah Kiat Pulp & Paper Tbk

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • PT Indah Kiat Pulp & Paper Tbk

Guarantors

Private Sector

  • PT Purinusa Ekapersada

Collateral providers

Joint Venture/Special Purpose Vehicles

  • PT Indah Kiat Pulp & Paper Tbk

Loan desecription

CDB provides RMB 553 million loan to Indah Kiat Pulp & Paper Factory

Interest type•UnknownMaturity•7 years

Collateral

A power plant owned by the borrower (PT Indah Kiat Pulp & Paper Tbk)

Narrative

Full Description

Project narrative

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.