ICBC provides RMB 2 billion loan to PT Bakrie Telecom Tbk to finance its capital expenditures

On August 12, 2010, ICBC, Huawei Technologies Co., Ltd., and PT Bakrie Telecom Tbk (BTel) signed an RMB 2 billion export credit facility agreement to finance BTel’s ongoing capital expenditures (capex). The loan carried a 5-year maturity and a 4.6% interest rate. The borrower (BTel) was expected to use the loan proceeds to finance up to 85% of the cost of its commercial contracts with Huawei Technologies Co., Ltd. However, under the terms of the facility agreement, any non-utilized commitment amount at the end of a 2 year availability period was to be irrevocably cancelled. As of August 12, 2012, BTel had still not used the export credit facility.

Additional details

1. PT Bakrie Telecom Tbk is an Indonesia-based telecommunication services provider. The company provides fixed digital radio cellular telecommunication network and services. Its services include fixed wireless access using extended-time division multiple access (E-TDMA) technology, which is a limited mobility service using code division multiple access (CDMA) 2000 1x technology. The Company's products consist of Esia, Wifone, Wimode, EsiaTel, SLI Hemat 009 and AHA (Affordable High-speed Access). The company has base transceiver station (BTS), call centers, Gerai Esia and dealers and outlets throughout Indonesia. Its subsidiaries include PT Bakrie Connectivity, which is engaged in telecommunication trading; PT Bakrie Network, which is engaged in provision of telecommunication infrastructure, and Bakrie Telecom Pte Ltd., which is a special purpose entity.

Number of official sources

5

Number of total sources

11