CDB provides $350 million loan to PT Smart Telecom as part of Buyer’s Credit Facility Phase II (Linked to Record ID#66471, #66464)

Project narrative

On June 29, 2011, PT Smart Telecom (Smartel), a subsidiary of PT Smartfren Telecom Tbk, signed the Buyer's Credit Facility Phase II Agreement worth $350 million with China Development Bank (CDB) as lender, arranger, and agent, and PT Bank Danamon Indonesia Tbk as security agent. On September 28, 2015, there was an amendment agreement to change the security agent to PT Bank Mandiri (Persero) Tbk. The loan has a grace period of 3 years and a maturity of 5 years, due on 2019. It has an interest rate of six-month LIBOR plus a certain margin, payable on May 20 and November 20 of each year. The average effective interest rate for the nine-month periods ended September 30, 2016 and 2015 were 3.90% and 3.17%, respectively. The average effective interest rate for the years ending December 31, 2018 and 2017, were 5% and 4.18%, respectively. The outstanding loan payable as of September 30, 2016 and December 31, 2015 amounted to $227,364,001 and $262,343,072, respectively. Outstanding loan payable as of December 31, 2018 and 2017 amounted to $34,979,050 and $104,937,210, 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.