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Overview

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

Commitments (Constant USD, 2023)$283,587,609
Commitment Year•2016Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•Unallocated/unspecifiedFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 19, 2016
Last repayment (originally scheduled)
Feb 18, 2019

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • PT Sinar Mas Agro Resources and Technology (SMART) Tbk

Guarantors

Private Sector

  • Golden Agri-Resources Ltd

Collateral providers

Private Sector

  • PT Tapian Nadenggan

Loan desecription

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

Interest type•UnknownMaturity•3 years

Collateral

This loan 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).

Narrative

Full Description

Project narrative

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.

Staff comments

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.