CDB provides $200 million (Phase 2) loan to Smartel for working capital and the acquisition of telecommunications equipment (Linked to Record ID#66468)

Project narrative

On May 13, 2016, PT Smart Telecom (Smartel), a subsidiary of PT Smartfren Telecom Tbk, signed a Credit Agreement with China Development Bank (CDB) for US $200 million for working capital and the purchase of handsets or communication equipment. The 4-year loan matures on June 3, 2019. The loan has an interest of six-month LIBOR + certain margin. The loan is secured by assignment of all PT Distribusi Sentra Jaya cash in bank, and corporate guarantee from the Company, PT Distribusi Sentra Jaya and PT Sinar Mas Tunggal, all of which are owned by Sinar mas group of business along with Smartel. The average effective interest rate for the years ending December 31, 2018, 2017 and 2016 are 5.65%, 4.83%, and 4.42%, respectively. The interest rate is coded as 4.42%, the one in the year the agreement was signed. Outstanding loan payables as of December 31, 2018 and 2017, were US$68,997,563 and US$199,996,532, respectively. ("2018 Annual Report.", "As of September 30, 2016 (Unaudited) and December 31, 2015 (Audited) and For the Nine-months Periods Ended September 30, 2016 and 2015 (Unaudited)") It is linked to Record ID#66468, the $50M from CDB for Working Capital Credit Facility Phase I.