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Bank Mandiri provides Rp 1.5 trillion loan facility to IIF
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Bank Mandiri vice president director Sulaiman Arif Arianto (left) shakes hands with PT Indonesia Infrastructure Finance (IIF) president director Arisudono (JP/Anton Hermansyah)
S
tate-owned lender Bank Mandiri disbursed on Wednesday an Rp 1.5 trillion (US$112.65 million) loan facility to state-owned infrastructure financing firm PT Indonesia Infrastructure Finance (IIF).
Bank Mandiri vice president director Sulaiman Arif Arianto said the facility had a three-year tenor and could be cashed in by IIF’s call. The credit facility has floating interest at a borrowing cost that is only 1 to 2 percent higher than the Jakarta Interbank Offered Rate (JIBOR), plus extra fees.
"This facility reflects our commitment to infrastructure development, as for now we have approved Rp 9.3 6 trillion in loans for infrastructure projects. The loan commitment is much bigger than that," he said after inking a memorandum of understanding (MoU) at the bank's headquarters.
Sulaiman acknowledged it was much easier now to channel loans to the sector with indirect participation through state-owned infrastructure financing companies such as IIF and PT Sarana Multi Infrastruktur (SMI).
Unlike direct participation with syndicated loans, IIF and SMI help deal with financing transmission on the field. "If we want to give a direct syndicated loan, sometimes we must compete with other state-owned and private banks," he said.
IIF president director Arisudono Soerono said the Rp 1.5 trillion facility was the second the bank had received from Bank Mandiri, after a Rp 1 trillion facility in 2015. (ags)
