CDB provides $300 million loan to PT Smart Telecom as part of Buyer’s Credit Facility Phase III (Linked to Project ID#66471, #66467)

On June 30, 2015, PT Smart Telecom (Smartel) signed a Buyer's Credit Facility Phase III Agreement worth $300,000,000 with China Development Bank (CDB) as lender and PT Bank Mandiri (Persero) Tbk as security agent. The proceeds were used to finance the company's capital expenditures. The loan has a grace period of 3 years and a maturity of 5 years, due in 2023. The loan has an interest rate of six-month LIBOR plus a certain margin, payable every May 20 and November 20 of each year. The average effective interest rate for the years ending December 31, 2018, 2017 and 2016 were 5.39%, 4.55%, and 4.16%, respectively. The loan is secured by pledge of shares of Smartel owned by the PT Smartfren Telecom Tbk, PT Smartfren Telecom Tbk's shares owned by PT Global Nusa Data, PT Bali Media Telekomunikasi, and PT Wahana Inti Nusantara, deed of fiduciary transfer for all assets purchased from this loan, trade accounts receivable, inventories, assignment of all the subsidiary’s cash, shares of PT Dian Swastatika Sentosa Tbk (DSS), Golden Agri Resources Ltd, Sinar Mas Land Ltd and corporate guarantee from PT Sinar Mas Tunggal. As of September 30, 2016 and December 31, 2015, Smartel made drawdowns totaling to US$ 158,068,293 or equivalent to Rp 2,054,571,672,414 and US$ 88,933,770 or equivalent to Rp 1,226,841,352,736, respectively. Outstanding loan payables on December 31, 2018 and 2017 amounted to US$ 284,996,502 and US$ 259,381,593, respectively. It is linked to #66471, $350M from CDB for phase I of Buyer's Credit Facility and #66467, $350M from CDB for phase II.

Additional details

1. The overall interest rate has been recorded as 5% based on LIBOR calculations since the margin is unknown.

Number of official sources

2

Number of total sources

4