CDB provides $300 million buyer's credit loan to PT Smart Telecom to finance its capital expenditures (Linked to Project ID#66467, #66464)

On December 28, 2006, PT Smart Telecom (Smartel) -- a subsidiary of PT Smartfren Telecom Tbk -- signed the Buyer's Credit Facility Phase I Agreement worth $300 million with China Development Bank (CDB). PT Prima Mas Abadi and PT Global Nusa Data served as co-obligor, and PT Bank Danamon Indonesia Tbk as security agent. The loan proceeds were used to finance Smartel's capital expenditures. The loan had a grace period of 28 months and a maturity of 6 years, due in 2014. It has an interest rate of six-month LIBOR (5.348%, the 6M LIBOR rate in December 2006) plus a margin of 1.7% = 7.048%, payable every May 20 and November 20 each year. The average effective interest rate in 2014 was 2.04%. Payment of loan principal amounted to US$299,847,962 up to December 31, 2015 and 2014, thus, there was no outstanding loan payable as of December 31, 2015 and 2014. The loan was secured by (i.e. collateralized against) 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. This transaction is linked to a $350 million CDB loan for Phase II of the Buyer's Credit Facility (captured via Project ID#66467) and a $300 million CDB loan for Phase III of the Buyer's Credit Facility (captured via Project ID#66464).

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