Bank Mandiri rolls out Rp 2,041t for Terbanggi Besar-Kayu Agung toll road
The Jakarta Post
The Jakarta Post, Bali
State-owned lender Bank Mandiri has continued to accelerate the development of infrastructure projects as part of an attempt to increase connectivity and cut the cost of goods and services distribution. The company will channel a syndicated loan for state-owned construction firm PT Hutama Karya to build a 185-kilometer toll road connecting Terbanggi Besar in Central Lampung and Kayu Agung in South Sumatra.
The syndicated loan is worth Rp 2.041 trillion. Twenty-two percent of the total syndicated loan will come from a financial institution at home, worth Rp 9.17 trillion.
Apart from the syndicated loan, PT Hutama Karya will also get a Rp 5.2 trillion credit default swap (CDS) facility to ensure the project's continuity.
A signing ceremony for the credit agreement was attended by Bank Mandiri large corporate banking SEVP Dikdik Yustandi, Bank Mandiri corporate banking director Royke Tumilaar and PT Hutama Karya managing director Bintang Perbowo in Bali on Thursday.
Royke said Bank Mandiri’s participation in the syndication had indicated the company's consistency in supporting synergy between state-owned companies in strategic government programs, particularly to speed up main infrastructure projects in the country.
"Bank Mandiri has a strong commitment to the development of important infrastructure projects such as toll roads, airports and seaports. Therefore, we have some financial products that could be used, including in the land acquisition phase, construction phase and operational phase," Royke emphasized.
At the same occasion, Bank Mandiri and its subsidiary companies, Mandiri Sekuritas and Mandiri Manajemen Investasi, in cooperation with state-owned toll road operator PT Jasa Marga (Persero) Tbk, also issued Kontrak Investasi Kolektif Dana Investasi Infrastruktur (KIK-DINFRA), collective investment contracts for infrastructure funds targeted at both domestic and global investors. The newly launched investment product received approval from the Financial Services Authority (OJK) on Oct. 11 and will be traded on the stock market with a target of raising Rp 1.5 trillion.
Bank Mandiri and Mandiri Sekuritas helped PT Jasa Marga issue on the international stock market Komodo bonds worth Rp 4 trillion at the end of last year, as well as limited participation mutual funds (RDPT) to fund toll road expansion programs of the company.
It is hoped that the alternative infrastructure financing through the capital market could be used by infrastructure companies to get effective financial support with a measurable cost.
On a separate occasion, Bank Mandiri gave a credit facility worth Rp 2.5 trillion for special transactions to PT Indonesia Infrastruktur Finance. The special transaction credit is a three-year tenor credit facility.
Bank Mandiri also gave a short-term credit facility worth Rp 500 billion, at a one-year tenor. The bank also has treasury line facility worth US$100 million over a five-year period.
"Bank Mandiri’s support toward Indonesia’s infrastructure finance was a show of our seriousness in boosting Indonesia’s economic growth through infrastructure development," he said.
In the infrastructure sector, Bank Mandiri gave a total of Rp 165.8 trillion in financial support per June 2018. Of the total amount, Rp 39.3 trillion was allocated for transportation development including airports and seaports, Rp 36.8 trillion for power plants, Rp 24.1 trillion for fuel and gas projects and renewable energy, Rp 18.3 trillion for toll roads and construction, and the remaining for the development of telematics, houses, city facilities and other sectors.
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