Bank of China contributes $6 million to $120 million syndicated loan to Garuda Indonesia for aircraft acquisition (Linked to Project ID#66396)
Commitment amount
$ 7044741.347555069
Adjusted commitment amount
$ 7044741.35
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Recipient
Indonesia
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
On November 6, 2012, ICBC and Bank of China signed an agreement to participate in a $120 million syndicated loan facility with Garuda Indonesia, an Indonesian state-owned airline. The proceeds of the loan were to be used by the borrower to purchase 24 new aircraft in 2013 and make improvements to Garuda Indonesia’s facilities. Citibank Indonesia was the coordinator of the loan. Bank of China acted as lead arranger. Bank ICBC Indonesia was the security agent. Other creditors that contributed to the syndicated loan included Bank Panin, First Gulf Bank PJSC's Singapore branch, Korea Development Bank, and Standard Chartered Bank. ICBC contributed $24 million to the loan (captured in Project ID#66396). Bank of China contributed $6 million to the loan (captured in Project ID#70807). The loan carried the following borrowing terms: a 2-year maturity and an interest rate of LIBOR + 4.00% margin for on-shore lenders and LIBOR + 3.75% margin for offshore lenders. The loan is collateralized by an existing USD bank account held with Citibank NA Jakarta Branch No. 0100193574. Garuda Indonesia had used the entire facility as of December 31, 2012. As of 2013, Garuda Indonesia had fully repaid the loan. The breakdown of the facility agents can be seen below: Citigroup global markets Singapore Pte Ltd 15,000,000 USD PT Bank Panin Tbk 25,000,000 USD PT Bank ICBC Indonesia 24,000,000 USD First Gulf Bank PJSC, Singapore Branch 20,000,000 USD Korea Development Bank 15,000,000 USD Standard Chartered Bank, Jakarta Branch 15,000,000 USD Bank of China Limited, Jakarta branch 6,000,000 USD
Additional details
1. AidData has calculated the effective interest rate of the BoC and ICBC loan as 4.437% (based on 6-month average LIBOR rate in 2012 of 0.687% and a 3.75% margin). 2. The Government of Indonesia holds a 60.54% ownership stake in Garuda Indonesia.
Number of official sources
3
Number of total sources
6
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
First Gulf Bank (FGB) [State-owned Bank]
Standard Chartered Bank PLC [Private Sector]
Korea Development Bank (KDB) [State-owned Bank]
Citibank N.A. [Private Sector]
PT Bank Pan Indonesia, Tbk (PaninBank) (Bank Panin) [Private Sector]
Direct receiving agencies [Type]
Garuda Indonesia [State-owned Company]
Security agent/Collateral agent [Type]
Citibank N.A. [Private Sector]
Collateral
The loan is collateralized by an existing USD bank account held with Citibank NA Jakarta Branch No. 0100193574.
Loan Details
Maturity
2 years
Interest rate
4.437%
Grant element (OECD Grant-Equiv)
2.286%