Chandra Asri secures USD250 million balloon payment facility from BNI
JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) and PT Chandra Asri Petrochemical, Tbk (TPIA) signed a new term loan scheme financing cooperation with balloon payments worth a total of USD 250 million or around IDR 3.5 trillion (using the foreign exchange rate of IDR 14,310 per US Dollar). This financing scheme is divided into two facilities.
First, the Term Loan 1 facility with a maximum of USD 150 million which is used to finance bond buybacks and refinancing the company's existing debt with a tenor of seven years. Second, the Term Loan 2 facility with a maximum of USD 100 million, to finance the pre-operation needs of the second global petrochemical complex (CAP2) with a ten-year tenor.
BNI Corporate Banking Director Silvano Rumantir explained that this financing is BNI's commitment to target low-risk segments, namely the corporate customer segment which is included in the Top Tier customers. This financing is the first step of business development between BNI and Chandra Asri.
Meanwhile, President Director of Chandra Asri Erwin Ciputra, said that this partnership with BNI is a step for Chandra Asri to continue to improve financial performance in order to provide operational excellence. "We are very pleased to partner with BNI, which is our partner for the growth of the national petrochemical industry as well as in expanding to support the development of CAP2. We hope that this partnership with BNI can continue to grow to serve Indonesia's domestic industry," he said.
Chandra Asri is the largest integrated petrochemical company in Indonesia. The company continues to be committed to increasing capacity to meet the increasing domestic demand for petrochemical products. One of the Company's strategies is to develop CAP2 on a global scale. With the construction of this complex, it is hoped that it will reduce Indonesia's dependence on imports, develop the local petrochemical downstream industry, support the government's vision for Industry 4.0 and create a long-term, high-value career. (LM)