JAKARTA - PT Bank Syariah Indonesia Tbk. (BSI) disbursed syndicated financing for the Makassar-Parepare Railway Cooperation Government and Business Entity (KPBU) project with a total investment financing of IDR 693.83 billion, as the Company's commitment to support infrastructure development.
Of the total investment value, BSI's portion reached IDR218.34 billion. In addition to BSI, syndicated financing through senior term loans and musyarakah mutanaqisah (MMq) financing was also disbursed by PT Indonesia Infrastructure Finance and PT Sarana Multi Infrastruktur (Persero).
This financing will be used by PT Celebes Railway Indonesia for the construction of the Makassar–Parepare Railway and its supporting infrastructure. The length of the railway line reaches 144 kilometers (km) which is divided into several sections and 16 stations.
The Makassar Parepare PPP project is the first PPP project for the Ministry of Transportation that uses the availability payment (AP) scheme, and uses the Sharia system. In this syndication, BSI acts as a Joint Mandated Lead Arranger (JMLA), escrow agent and guarantee agent. The syndication was held at the signing of the Senior Term Loan Syndication Facility Agreement and Musyarakah mutanaqisah (MMq) Financing at The Ritz Carlton Ballroom, SCBD, Jakarta, Thursday (3/6).
Director of Wholesale & Transaction Banking of PT Bank Syariah Indonesia Tbk, Kusman Yandi added, syndicated financing is one of BSI's strategies in increasing wholesale financing. By the end of 2021 BSI is targeting wholesale financing growth of around 5% year on year (yoy). (LM)