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Overview

ICBC Indonesia contributes $150 million to $200 million club loan tranche to Indonesia Eximbank for foreign trade financing purposes

Commitments (Constant USD, 2023)$156,929,757
Commitment Year•2015Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaOverseas Jurisdiction•IndonesiaSector•Trade Policies And RegulationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 22, 2015
Last repayment
Sep 20, 2020

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 Commercial Banks

  • PT Bank ICBC Indonesia

Cofinancing agencies

State-owned Commercial Banks

  • CMB Wing Lung Bank (formerly Wing Lung Bank)
  • Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia))

Receiving agencies

State-owned Banks

  • Indonesia Eximbank
  • PT Lembaga Pembiayaan Ekspor Indonesia (LPEI)

Implementing agencies

State-owned Banks

  • PT Lembaga Pembiayaan Ekspor Indonesia (LPEI)

Loan desecription

ICBC Indonesia contributes to $200 million syndicated loan tranche to Indonesia Eximbank for foreign trade financing purposes

Grant element•13.8039%Interest rate (t₀)•3.125%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On September 22, 2015, Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank or LPEI) — an Indonesia state-owned bank — signed a $500 million loan (borrowing facility) agreement with CMB Wing Lung Bank, Industrial and Commercial Bank of China (Asia) Limited (also known as ICBC (Asia) Limited), and Bank ICBC Indonesia (also known as ICBC Indonesia) to support foreign trade financing activities in Indonesia. The loan carried the following borrowing terms: a 5-year maturity and an interest rate of 3.125%. ICBC Indonesia acted as the facility agent, while ICBC (Asia) Limited served as the lead arranger. The loan consisted of two tranches: a $200 million tranche with three participants (ICBC Indonesia, ICBC (Asia) Limited, and CMB Wing Lung Bank) and a $300 million tranche with two participants (ICBC Indonesia and ICBC (Asia) Limited). ICBC Indonesia contributed $150 million, ICBC (Asia) Limited contributed $30 million, and Wing Lung HK contributed $20 million to the $200 million tranche. ICBC Indonesia contributed $270 million and ICBC (Asia) Limited contributed to the $30 million to the $300 million tranche. The lender fully disbursed the $200 million tranche on September 29, 2015 and it fully disbursed the $300 million tranche on November 19, 2015. The final maturity dates of these two borrowings (tranches) were September 29, 2020 and November 19, 2020, respectively. Both borrowings (tranches) were fully repaid.

Staff comments

1. This transaction was reportedly the first phase of a $20 billion MoU with ICBC (as captured in Record ID#68792). 2. Indonesia Eximbank is 100% owned by the Government of Indonesia and it provides import and export financing. 3. CMB Wing Lung Bank is wholly owned by China Merchants Bank (CMB), which is a Chinese state-owned commercial bank.