CDB provides RMB 1.9 billion loan to Bank Mandiri for infrastructure construction activities (Linked to Project ID#66753)

On September 16, 2015, China Development Bank and Bank Mandiri — an Indonesian state-owned bank — signed a $1 billion loan facility agreement for infrastructure construction activities. The loan was not collateralized and it was divided into two facilities (tranches): a $700,000,00 tranche (Tranche A) and an RMB 1,908,420,000 tranche (Tranche B). Tranche A, which is captured via Project ID#66753, carried a 10-year maturity, 3-year grace period, and an interest rate a 6-month LIBOR rate (0.537%, the 6-month LIBOR in September 2015) plus an unknown margin. Tranche B, which is captured via Project ID#66754, carried a 10 year maturity, 3 year grace period, and an interest rate of 6-month SHIBOR (3.324% on September 16, 2015) plus 3.30% per annum (6.624%). The CDB loan was fully drawn down by the borrower. It disbursed on November 13, December 3, 11, 18, 23 and 28 in 2015. On March 16, 2021, Tranche B was converted into a loan in USD with a total amount of $194,288,681 (full amount) with an interest rate of 6 (six) months LIBOR plus a certain margin. There was no change to the maturity of the Tranche B facility. The amount outstanding under Tranche A was $373,333,333 as of December 31, 2021 and $280,000,00 as of December 31, 2022. The amount outstanding under Tranche B was $155,403,149 as of December 31, 2021 and $116,523,149 as of December 31, 2022.

Additional details

1. On September 16, 2015, China Development Bank signed multiple loan agreements worth $3 billion with three of Indonesia's state owned banks: Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia in order to support infrastructure construction activities in Indonesia. Each bank secured a $1 billion loan (70% denominated in USD and 30% denominated in RMB) with a 10-year maturity and 3-year grace period. These loans disbursed in October, November, and December of 2015. Each of the following sub-projects total to $1 billion: (1) Bank Mandiri's USD tranche is captured in Project ID#66753 and the RMB tranche part is captured in Project ID#66754; (2) Bank Negara Indonesia's USD tranche is captured in Project ID#66755 and the RMB tranche is captured in Project ID#66756; and (3) Bank Rakyat's USD tranche is captured in Project ID#66757 while its RMB tranche is captured in Project ID#66758. 2. None of these CDB loans to Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia are included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. For the time being, AidData assumes that the borrowing terms of the $700 CDB loan tranche to Bank Mandiri are similar to the borrowing terms that CDB offered to Bank Rakyat. The borrowing terms of the $700 million CDB loan to Bank Rakyat were as follows: 10 year maturity and an interest rate of 6-month LIBOR (0.537%) plus 2.85% per annum (3.387%). 4. The 2021 and 2022 amount outstanding data are drawn from https://www.bankmandiri.co.id/documents/38265486/0/%5BFinal%5D+BMRI+1222+-+Audited+Financial+Statements+31+Desember+2022+-+English+Version_signed+%282%29.pdf/46ae53fa-e8ad-24ba-7b04-50ce777bde12?t=1676350164918

Number of official sources

6

Number of total sources

8