Overview

CDB provides $50 million (Phase 1) loan to Smartel for working capital and the acquisition of telecommunications equipment (Linked to Record ID#66462)

Commitments (Constant USD, 2023)$51,698,565

Commitment Year•2013Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Mar 25, 2013

Start (actual): Dec 31, 2014

First repayment (originally scheduled): Jul 2, 2014

Last repayment (originally scheduled): Jan 1, 2016

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)

Loan desecription

CDB provides $50 million (Phase 1) loan to Smartel for working capital and the acquisition of telecommunications equipment

Grace period•1.5 yearsGrant element•11.3247%Interest rate (t₀)•4%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•3 years

Narrative

Full Description

Project narrative

On March 25, 2013, China Development Bank signed a phase 1 of a Working Capital Credit Facility Agreement for $50 million with PT Smartfren Telecom (Smartel), a subsidiary of PT Smartfren Telecom Tbk, for the purchase of handsets or communication equipment. The loan has an 18 month grace period, and will be due in 2016 with an interest rate of six-month LIBOR plus a certain margin payable every May 20 and November 20 each year. The average effective interest rate in 2015 and 2014 is 3.95% and 3.88%, while the average effective interest rate for the nine-month periods ended September 30, 2016 and 2015 were 4.16% and 3.92%, respectively. The outstanding loan payable as of December 31, 2015 and 2014 amounted to $12,490,847 and $33,308,926, respectively. In March 2016, Smartel had fully repaid this loan.

Staff comments

1. The interest rate has been recorded as 4%, the approximate average of the recorded average effective interest rates. 2. This transaction is linked to Record ID#66462, $200 million from CDB for Working Capital Credit Facility Phase II.