Chandra Asri, Conglomerate Prajogo Pangestu's Company, Gets Rp5 Trillion Loan From Bank Mandiri

Indonesian President Joko Widodo (Jokowi) together with conglomerate Prajogo Pangestu. (Photo: Doc. Setkab)

JAKARTA - PT Chandra Asri Petrochemical Tbk and PT Bank Mandiri Tbk signed a financing agreement with a new term loan and account receivables financing scheme worth a total of Rp5 trillion.

Of this value, the term loan facility provided by Bank Mandiri is worth US$280 million or around Rp4 trillion (exchange rate of Rp14,285) with a tenor of seven years. In addition, for the account receivables financing facility, the total limit provided is Rp1 trillion with a tenor of two years.

President Director of Chandra Asri, Erwin Ciputra, said that his party welcomes to continue to develop partnerships with Bank Mandiri. According to him, the financing will be used to finance the company's daily operations and support Chandra Asri's working capital.

"We appreciate the bank's confidence in the quality of our credit which has successfully weathered the COVID-19 pandemic smoothly to maintain breakthrough financial performance, maintain a strong balance sheet and liquidity pool, and continue to provide operational excellence with a good safety track record. We look forward to strengthening our partnership with Bank Mandiri because we continue to grow to serve the domestic industry," he said through a press release, quoted on Saturday, June 12.

Meanwhile, Bank Mandiri Director of Corporate Banking Susana Indah Kris Indriati said that the financing was a form of Bank Mandiri's implementation to target the petrochemical industry sector to become one of the mainstay sectors, as a form of support in order to reduce dependence on imported products, while continuing to prioritize the precautionary principle.

"This support is also proof of the realization of Bank Mandiri's desire to become the main financial partner of choice for customers with various main financial products, including to support customers' daily transactions," she said.

In addition to providing new credit facilities, the issuer bank codenamed BMRI also extended the tenor of the Committed and Unsecured Revolving Credit Facility worth 50 million US dollars to support Chandra Asri's working capital needs.

Not only that, but Bank Mandiri also renewed the term of the Trust Receipt facility for Chandra Asri from the original 50 million US dollars to 75 million US dollars.

Susana added, going forward, Bank Mandiri will continue to explore credit potential in other positive prospect sectors such as Fast Moving Consumer Goods, palm oil and CPO plantations, energy, and construction.

"Not only that, but we are also targeting potential businesses in regional offices as a form of Bank Mandiri's mitigation to help the National Economic recovery agenda," said Susana.