Bank of China contributes $6 million to $120 million syndicated loan to Garuda Indonesia for aircraft acquisition (Linked to Record ID#66396)

Project narrative

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 Record ID#66396). Bank of China contributed $6 million to the loan (captured in Record 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