Bank of China contributes $100 million to $1 billion syndicated term loan facility to PLN for general corporate purposes (Linked to Project ID#97864, #97865)

In October 2019, a group of banks -- including Bank of China, China Development Bank, and China Construction Bank -- reached financial close on a USD 1 billion on-and-offshore syndicated term loan facility to Perusahaan Listrik Negara (PLN), Indonesia's state-owned electric company, for general corporate purposes. An agreement on the facility was reached on June 25, 2019 between PLN and Bank DBS Indonesia, before being opened to syndication and reaching financial close in October 2019. The facility holds a maturity of five years and carries an interest rate of 3-month LIBOR plus 90 basis points. The scheduled maturity date of the facility is June 25, 2024. Proceeds from the facility will be used for general corporate purposes. As of December 31, 2019, the outstanding balance of the facility amounted to USD 502.6 million. Bank of China (Hong Kong branch) served as a mandated lead arranger and bookrunner, contributing USD 100 million, which is captured via project ID #97863. China Development Bank (Hong Kong branch) served as a mandated lead arranger, contributing USD 100 million, which is captured via project ID #97864. China Construction Bank (Singapore branch) served as a mandated lead arranger, contributing USD 98 million, which is captured via project ID #97865. Other members of the syndicate include mandated lead arrangers and bookrunners Cathay United Bank, DBS Bank, DBS Indonesia, Korea Development Bank, MUFG Bank, Bank BTPN, and UOB, which each contributed USD 72 million, in addition to OCBC, which contributed USD 100 million. Norinchukin Bank served as lead arranger, contributing USD 70 million. Chang Hwa Commercial Bank served as arranger, contributing USD 30 million. Lead managers included Bank of Taiwan, First Commercial Bank, and Hua Nan Commercial Bank contributing USD 20 million each, in addition to Musashino Bank's contribution of USD 10 million.

Additional details

1. AidData has calculated the interest rate using the 3-month LIBOR rate for October 2019, adding the margin of 90 basis points (1.977 + 0.9 = 2.877). For more information, see: https://www.global-rates.com/en/interest-rates/libor/american-dollar/2019.aspx

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