ICBC BCA provides $65 million loan to PT Aneka Tambang Tbk for unspecified purposes

In 2018, ICBC-BCA issued a $65 million a loan to PT Aneka Tambang Tbk for unspecified purposes. The loan carried a maturity of 4 years and an interest rate of 3-month LIBOR rate plus a 3.13% margin. The loan was to be repaid every 3 months, with the repayment period running from March 3, 2018 to June 25, 2022. Under the loan agreement, ICBC required that PT Aneka Tambang Tbk abide by the following terms: 1. Debt-to-equity Ratio should not exceed 2.5 times; 2. Debt Service Coverage Ratio minimum of 1.25 times; and 3. Maintain equity to be greater than Rp7,000,000,000. PT Aneka Tambang Tbk was granted deferral of loan principal repayments as well as the extension of loan maturity date due to the COVID-19 outbreak in 2019. In December 2020, PT Aneka Tambang Tbk made early partial repayment of its loan from ICBC-BCA. In addition, it obtained an approval from ICBC-BCA to accelerate the maturity date of the remaining balance of the loan to June 25, 2022.

Additional details

1. The all-in interest rate that applies to this loan (5.334%) was estimated by taking the average 3-month LIBOR rate in 2018 (2.204%) — the year when the loan agreement was finalized — and adding a 3.13% margin. 2. PT Aneka Tambang Tbk, colloquially known as Antam, is an Indonesian mining company. The company primarily produces gold and nickel, and is the largest producer of nickel in Indonesia. Until 2017, Antam was a directly state-owned company, before its ownership was transferred to PT Indonesia Asahan Aluminium (Persero) (Inalum), a government-owned holding company.

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