JAKARTA - PT Smartfren Telecom Tbk (FREN) obtained credit loans from a syndicate of up to IDR 7.2 trillion.

This was through the signing of the company and its subsidiary, namely PT Smart Telecom (Smartel), and syndicated banks. Smartel is owned more than 99 percent by the Company.

Quoting the disclosure of information, Friday, February 3, the value of the loan facility is divided into 3 (three) tranches, as follows:

Tranche 1: IDR 5.2 trillion to refinance Smartel's loan to China Development Bank (CDB) Shenzhen Branch

Tranche 2: IDR 1.5 trillion for the Company's and/or Smartel's capital expenditures; And

Tranche 3: IDR 0.5 trillion for the Company's and/or Smartel's capital expenditures.

This loan facility has a term of 7 (seven) years with an interest rate of 3 months JIBOR + certain margin. This transaction is not an affiliated transaction as referred to in OJK Regulation No. 42/POJK.04/2020 concerning Affiliated Transactions and Conflicts of Interest.

Those who signed the deed were:

(i) the Company and Smartel, as Borrowers;

(ii) Lenders, namely:

- PT Bank Central Asia Tbk. (BCA)

- PT Sarana Multi Infrastruktur (SMI) (BCA and SMI are the Original Mandated Lead Arranger and Bookrunner)

- PT Bank Mega Tbk.

- PT Allo Bank Indonesia Tbk.

- PT Bank Mayapada International Tbk.

- PT Bank Permata Tbk.

- PT Bank CIMB Niaga Tbk.

- PT Indonesia Infrastructure Finance (IIF)

- PT Bank Ina Perdana

- PT Papua Regional Development Bank

(iii) BCA, as Facility Agent and Collateral Agent.

Refinancing a Smartel loan that was previously a loan in foreign currency to a loan in Rupiah will reduce the risk of exposure to foreign exchange.

In addition, the Company and Smartel will receive additional funds for capital expenditure in order to develop networks and improve services which are expected to support the business development of the Company and Smartel.


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