ICBC contributes IDR 500 billion to IDR 4.179 trillion syndicated loan for Pandaan-Malang Toll Road Project (Linked to Project ID#61426)

On October 13, 2017, PT Jasamarga Pandaan Malang (JPM) — a special purpose vehicle and joint venture of 3 Indonesian state-owned enterprises: PT Jasa Marga (Persero) Tbk (60% ownership stake), PT PP (Persero) Tbk (35% ownership stake), and PT SMI (5.0% ownership stake) — signed an IDR 4.179 trillion syndicated loan agreement with Bank BCA, Bank Mandiri, BNI, ICBC Indonesia, Indonesia Eximbank, and Bank Jateng. ICBC Indonesia contributed IDR 500 billion to the syndicated loan. The loan has a 15-year maturity and it bears interest at an average of 3-month time deposit rate published by syndicated banks plus a margin of 4.5% during construction time (and 4.25% from the date of toll operation period). Its final maturity date is October 2032. The loan is secured by (collateralized with) compensation from JPM’s bridge financing provided to the Government of Indonesia for land acquisition, toll receivables and other revenues, concession to the Pandaan-Malang toll road, insurance, claims and bank guarantees and land funding, escrow, construction, collection, debt service, debts service reserve, operational and excess cash accounts. The purpose of the project was to design, finance, construct, and operate a 38.48 km Pandaan-Malang Toll Road, which connects Malang city with Pandaan of Pasuruan Regency. It is divided into 5 sections. Section I: Pandaan-Purwodadi is 15.47 km. Section II: Purwodadi-Lawang 8.05 km. Section III: Lawang-Singosari 7.10 km. Section IV: Singosari-Pakis 4.75 km. Section V: Pakis-Malang 3.11 km. The road was designed to facilitate industrial transportation to Malang and Batu city and reduce the travel time of Pandaan-Pasuruan-Malang to less than an hour. The Government of Indonesia granted JPM a 35-year toll road concession in 2016. Construction began in early 2017. By the end of 2017, Section I had achieved a 23.89% (construction) completion rate, Section II had achieved a 7.98% completion rate, Section III had achieved a 5.92% completion rate, Section IV had achieved a 0.14% completion rate, and Section V had achieved a 0.43% completion rate. Sections I, II, and III have been operational since May 13, 2019. Section 4 has been operational since November 2019. Section 5 began operations on April 7, 2020.

Additional details

1. PT Jasa Marga (Persero) Tbk and Sarana Multi Infrastruktur (Persero) [PT SMI], and PT PP (Persero) Tbk are all Indonesian state-owned enterprises. 2. ICBC Indonesia reportedly signed an agreement to provide IDR 1000 billion in total for a syndicated loan worth IDR 7756 trillion, of which IDR 500 billion was used to finance the construction of Pandaan-Malang Toll Road (captured in Project ID#69113) and IDR 500 billion was used to finance the construction of Manado-Bitung Toll Road (captured in Project ID#61426).

Number of official sources

7

Number of total sources

17