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Overview

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

Commitments (Constant USD, 2023)$316,255,129
Commitment Year•2015Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 16, 2015
Start (actual)
Dec 1, 2015
First repayment (originally scheduled)
Sep 15, 2018
Last repayment (originally scheduled)
Sep 13, 2025

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

State-owned Banks

  • PT Bank Negara Indonesia (Persero)

Implementing agencies

State-owned Banks

  • PT Bank Negara Indonesia (Persero)

Loan description

CDB provides RMB 1.9 billion loan (Tranche B) to Bank Negara Indonesia for infrastructure construction activities

Grace period•3 yearsGrant element•14.4747%Interest rate (t₀)•6.624%Interest type•Variable Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

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 Record 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 Record 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.

Staff comments

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 Record ID#66753 and the RMB tranche part is captured in Record ID#66754; (2) Bank Negara Indonesia's USD tranche is captured in Record ID#66755 and the RMB tranche is captured in Record ID#66756; and (3) Bank Rakyat's USD tranche is captured in Record ID#66757 while its RMB tranche is captured in Record 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%.