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Overview

ICBC Indonesia contributes $24 million to $120 million syndicated loan to Garuda Indonesia for aircraft acquisition (Linked to Record ID#70807)

Commitments (Constant USD, 2023)$26,011,628
Commitment Year•2012Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaOverseas Jurisdiction•IndonesiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 6, 2012
First repayment (originally scheduled)
Feb 5, 2014
Last repayment (originally scheduled)
Nov 6, 2014

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 Commercial Banks

  • PT Bank ICBC Indonesia

Cofinancing agencies

Private Sector

  • Citibank, N.A.
  • PT Bank Pan Indonesia, Tbk (PaninBank) (Bank Panin)
  • Standard Chartered Bank PLC

State-owned Banks

  • First Gulf Bank (FGB)
  • Korea Development Bank (KDB)

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

State-owned companies

  • PT Garuda Indonesia (Persero) Tbk

Collateral providers

State-owned companies

  • PT Garuda Indonesia (Persero) Tbk

Security / collateral agents

Private Sector

  • Citibank, N.A.

Loan description

ICBC and Bank of China's contributions to $120 million syndicated loan to Garuda Indonesia for aircraft acquisition

Grace period•1.25 yearsGrant element•8.0282%Interest rate (t₀)•4.2835%Interest type•Variable Interest RateMaturity•2 years

Collateral

An existing USD bank account held with Citibank NA Jakarta Branch No. 0100193574

Narrative

Full Description

Project narrative

On November 6, 2012, Garuda Indonesia -- an Indonesian state-owned airline -- signed a $120 million syndicated loan (facility) agreement with nine banks (including Bank of China and ICBC). The proceeds of the loan were to be used by the borrower to purchase 24 new aircraft in 2013 and make improvements to Garuda Indonesia’s facilities. Citibank Indonesia was the coordinator of the loan. Bank of China acted as lead arranger. Bank ICBC Indonesia was the security agent. Other creditors that contributed to the syndicated loan included Bank Panin, First Gulf Bank PJSC's Singapore branch, Korea Development Bank, and Standard Chartered Bank. ICBC contributed $24 million to the loan (captured in Record ID#66396). Bank of China contributed $6 million to the loan (captured in Record ID#70807). The loan carried the following borrowing terms: a 2-year maturity and an interest rate of LIBOR + 4.00% margin for on-shore lenders and LIBOR + 3.75% margin for offshore lenders. Payments of the principal of the loan (worth $30 million each) were to be made at month 15, 18, 21 and 24. The loan is collateralized by an existing USD bank account held with Citibank NA Jakarta Branch No. 0100193574. Garuda Indonesia had used the entire facility as of December 31, 2012. As of 2013, Garuda Indonesia had fully repaid the loan. The breakdown of the facility agents can be seen below: Citigroup global markets Singapore Pte Ltd 15,000,000 USD PT Bank Panin Tbk 25,000,000 USD PT Bank ICBC Indonesia 24,000,000 USD First Gulf Bank PJSC, Singapore Branch 20,000,000 USD Korea Development Bank 15,000,000 USD Standard Chartered Bank, Jakarta Branch 15,000,000 USD Bank of China Limited, Jakarta branch 6,000,000 USD

Staff comments

1. AidData has calculated the all-in interest rate of the loan by adding 3.75% to average 3-month LIBOR in November 2012 (0.311%). 2. The Government of Indonesia holds a 60.54% ownership stake in Garuda Indonesia.