Chandra Asri, Owned By Conglomerate Prajogo Pangestu, Gets A Rp3.5 Trillion Loan From BNI

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BNI) and PT Chandra Asri Petrochemical, Tbk (TPIA) signed a financing facility agreement with a new term loan scheme. The cooperation between the state-owned bank and the company owned by the conglomerate Prajogo Pangestu is with a balloon payment worth a total of 250 million US dollars, or around Rp. 3.5 trillion.

In a written statement quoted on Wednesday, October 6, this financing scheme is divided into two facilities. First, the Term Loan 1 facility with a maximum of 150 million US dollars 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 US$ 100 million, to finance the pre-operation needs of the second global petrochemical complex (CAP2) with a tenor of 10 years.

This Chandra Asri and BNI collaboration was established through the signing of a Credit Agreement by the Head of BNI's Corporate Business Division 2, Ditya Maharhani Harninda and Chandra Asri's Director of Finance, Andre Khor Kah Hin, and Chandra Asri's Director of Human Resources & Corporate Affairs, Suryandi, Tuesday 5 October. The event was also attended by BNI Corporate Banking Director Silvano Rumantir.

Silvano said 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.

"We hope that BNI can become the preferred partner for the company and can provide Financial Solutions by providing a complete and comprehensive range of banking products and services for the company," said Silvano.

Furthermore, Silvano said, this financing to the Petrochemical sector is a manifestation of BNI's commitment to reduce Indonesia's dependence on imports of Petrochemical products. The collaboration with Chandra Asri is also expected to continue in a sustainable and sustainable manner in line with BNI's plan to develop a healthy and prudent business banking.

Meanwhile, President Director of Chandra Asri Erwin Ciputra said, 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.