CDB provides $260 million loan to PT SMART Tbk for unspecified purposes

On February 19, 2016, China Development Bank (CDB) and PT Sinar Mas Agro Resources and Technology (SMART) Tbk — a subsidiary of Golden Agri-Resources (GAR) and a publicly-listed, global seed-to-shelf agribusiness focused on sustainable palm oil production — entered into a $260,000,000 credit agreement for unspecified purposes. The loan had a 3-year maturity and an unknown interest rate. It was secured by (collateralized with) land rights on parcels of land with a total area of 20,623.95 hectares, buildings, land improvements and bridges owned by TAPIAN (a subsidiary of PT SMART Tbk). A corporate guarantee was also issued by Golden Agri-Resources Ltd. (GAR) in support of the loan. The loan was fully settled in February 2019.

Additional details

1. PT Purimas Sasmita (PURIMAS) is the parent entity of PT SMART Tbk, whereas Golden Agri-Resources Ltd. (GAR) is its ultimate parent entity. The primary activities of PT SMART Tbk include the cultivation around 137 thousand hectares of oil palm plantations in Indonesia, including plasma smallholders; harvesting and extracting fresh fruit bunches (FFBs) into crude palm oil (CPO) and palm kernel (PK), to processing it into a broad range of industrial and consumer products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals, as well as merchandising palm products throughout the world.

Number of official sources

4

Number of total sources

4