CDB provides RMB 1.9 billion loan (Tranche B) to Bank Negara Indonesia for infrastructure construction activities (Linked to Project ID#66755)

On September 16, 2015, China Development Bank (CDB) and Bank Negara Indonesia (BNI)— an Indonesian state-owned bank — signed a $1 billion facility (loan) agreement for infrastructure construction activities. Its final maturity date was September 16, 2025. The loan was divided into two facilities. Tranche A, worth $700 million and captured via Project ID#66755), carried a 10-year maturity, a 3-year grace period, and an interest rate of LIBOR plus a 2.85% margin. As of December 31, 2017, the amount outstanding under Tranche A stood at $697 million. As of December 31, 2018, it stood at $651 million. Tranche B, worth RMB 1.9 billion and captured via Project ID#66756, carried a 10-year maturity, a 3-year grace period, and an interest rate of SHIBOR plus a 3.30% margin. As of December 31, 2017, the amount outstanding under Tranche B stood at RMB 1.903 million. As of December 31, 2018, it stood at RMB 1.776 million.

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. AidData calculated the interest rate for Tranche A as follows: 0.537% (average 6-month LIBOR rate in September 2015) + 2.85% (given margin) + 3.387%. The interest rate for Tranche B was calculated as follows: 3.324% (average 6-month SHIBOR in September 2015) + 3.30% (given margin) = 6.624%.

Number of official sources

5

Number of total sources

6