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Overview

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

Commitments (Constant USD, 2023)$380,003,335
Commitment Year•2010Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 12, 2010
Last repayment (originally scheduled)
Aug 11, 2015

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • PT Bakrie Telecom Tbk (BTel)

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

Loan description

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

Grant element•10.736%Interest rate (t₀)•4.6%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

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.

Staff comments

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.