TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
BRI secures US$1 billion in foreign loans amid economic uncertainty
Change Size
Good news: State-owned lender PT Bank Rakyat Indonesia (BRI) President Director Sunarso (left) explains that the US$1 billion foreign loan secured by BRI amid global economic uncertainty signifies a high level of trust in Indonesia and BRI among foreign investors. (Photo courtesy of BRI)
A
mid global economic uncertainty, state-owned lender PT Bank Rakyat Indonesia (BRI) has secured a foreign loan commitment worth US$1 billion for the year 2020.
BRI obtained the commitment in a club loan scheme from 10 regional banks across Asia, Europe and the United States. BRI will earmark the loan for strengthening its liabilities structure while increasing its net stable funding ratio, maintaining foreign exchange liquidity and preparing sources of funding for credit expansion.
BRI president director Sunarso explained that this foreign loan signified foreign investors’ high level of trust in BRI and Indonesia amid global uncertainty while also demonstrating that Indonesia was one of the world’s most attractive investment destinations.
The club loan scheme comprises three facilities: Tranche a with $500 million value with a year tenure, Tranche B with a $200 million value with a two-year tenure and Tranche C worth $300 million with a five-year tenure.
“The club loan scheme can be a foreign exchange funding alternative for BRI to supplement its global bond issuance to source the bank’s third party funds,” BRI treasury and global services senior executive vice president Listiarini Dewajanti said.
In 2018, BRI secured $700 million in foreign loans The club loan syndication has been disbursed by 13 creditors comprising three tranches: $200 million, $235 million and $265 million.
