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Overview

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

Commitments (Constant USD, 2023)$313,859,514
Commitment Year•2015Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 30, 2015
Start (actual)
Dec 31, 2015
First repayment (originally scheduled)
Jun 29, 2018
Last repayment (originally scheduled)
Jun 28, 2020

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

Private Sector

  • PT Smart Telecom (Smartel)

Collateral providers

Private Sector

  • PT Sinar Mas Tunggal

Loan description

CDB provides $300 million loan to PT Smart Telecom as part of Buyer’s Credit Facility Phase III

Grace period•3 yearsGrant element•15.3868%Interest rate (t₀)•5%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Collateral

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

Narrative

Full Description

Project narrative

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 Record ID#66471, $350M from CDB for phase I of Buyer's Credit Facility and #66467, $350M from CDB for phase II.

Staff comments

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