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Overview

Bank of China contributes $200 million to $650 million syndicated loan for April International Group (AIG) Pulp and Paper Project

Commitments (Constant USD, 2023)$218,144,315
Commitment Year•2016Country of Activity•IndonesiaDirect Recipient Country of Incorporation•SingaporeSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2016

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 Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Royal Golden Eagle (RGE) Group

Loan description

BOC contributions to 650 million USD 2016 syndicated loan for pulp and paper operations of April International Group (AIG) Ltd

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2016, the Royal Golden Eagle Group (RGE) secured a $650 million syndicated loan for the April International Group (AIG) Pulp and Paper Project. Bank of China contributed $200 million to the syndicate. The other members of the syndicated are unknown. The borrowing terms of the loan are also unknown. The purpose of the loan was to support the support the pulp and paper operations of April International Group (AIG) Ltd in Indonesia.

Staff comments

1. This project is also known as the AIG5 Project. The Chinese project title is AIG5银团贷款项目. 2. Some sources suggest that the borrowing institution may be Asia Pacific Resources International Limited (APRIL), a subsidiary of Royal Golden Eagle (RGE) Group. This issue warrants further investigation. 3. Royal Golden Eagle (RGE, also known as Raja Garuda Emas, previously Raja Garuda Mas) is global integrated, resource-based industrial group, with businesses in paper, palm oil, viscose, construction and energy, property and asset management. Owned by Indonesian businessman Sukanto Tanoto, the group employs 60,000 people worldwide with assets exceeding $25 billion. One of its wholly-owned subsidiaries in Asia Pacific Resources International Holdings Limited (APRIL). Located in the Riau province of Indonesia, APRIL operates one of the world’s largest pulp and paper mills. With an annual pulp production capacity of 2.8 million tons and an annual fine paper production capacity of 820,000 tons, it generates employment opportunities for 90,000 local people and represents 6.9% of Riau Province’s economic output.