ICBC Indonesia contributes $25 million to syndicated loan to develop Seruyung and Bakan gold mines

Project narrative

On November 14, 2013, PT J Resources Nusantara — a gold mining project company and subsidiary of PT. J Resources Asia Pacific. Tbk — signed a $275 million syndicated loan agreement with five banks to repay its debts, develop mining sites, and boost production. ICBC Indonesia contributed $25 million and acted as a Mandated Lead Arranger and Book Runner. Indonesia Eximbank contributed $110 million; Qatar National Bank S.A.Q. contributed $50 million; PT Bank QNB Kesawan contrived $25 million; PT Bank Permata contributed $65 million. The loan facility consisted of Facility A of $200 million, Facility B of $50 million, and Facility C of $25 million. The final maturity date of the loan is December 30, 2017. The loan carried a 4-year maturity and an interest rate of LIBOR plus a 6% margin on or prior to December 31, 2014, and LIBOR + a 5.75% margin after the date. As of December 31, 2013, total loan drawdowns by PT J Resources Nusantara amounted to $240 million. The commitments from ICBC to each individual facility are unclear. Roughly 60% of the loan proceeds were to be used by PT J Resources Nusantara to develop gold mining sites and boost production, while the other 40 percent of the loan proceeds were to be used by PT J Resources Nusantara to repay debts. Part of the loan proceeds were to be used to support mining activities at the Penjom gold mine in Pahang, Malaysia, and develop new gold mining sites and facilities in Seruyung within East Kalimantan Province (exact locational coordinates: 4° 0' 31" N, 117° 14' 27" E) and in Bakan within North Sulawesi Province (exact locational coordinates: 0° 34' 19" N, 124° 18' 42" E). The Bakan gold mine achieved initial production in December 2013 and the Seruyung gold mine achieved initial production in January 2014.