business

Chandra Asri Group Secures A Continuous Syndicated Loan Of USD 800 Million

Chandra Asri Group has officially utilized the Greenshoe option in the syndicated loan facility related to sustainability ("Facility") equivalent to US$600 million, which was signed in May 2024, by increasing the Facility to the equivalent of US$800 million after receiving positive response and high demand for the Facility from the banking market.

This facility is provided by a number of banking partners from various countries, including Indonesia, Singapore, and Thailand. This agreement marks greater and solid support from the banking industry, reinforcing Chandra Asri's commitment to responsible business practices and environmental management that is expected to enhance the Company's overall performance.

Chandra Asri Group partners with Oversea-Chinese Banking Corporation Limited ("OCBC") as the advisory bank and Mandated Lead Arranger, Underwriter, and Bookrunner ("MLAUB") for the syndicated loan facility worth USD800 million, supported by leading financial institutions such as: PT Bank Central Asia Tbk, PT Bank Danamon Indonesia Tbk, KASIKORNBANK PUBLIC COMPANY LIMITED, PT Bank Permata Tbk., PT BANK HSBC INDONESIA, PT Bank Mandiri (Persero) Tbk, and Bank ICBC Indonesia. Additionally, OCBC also acts as the sole Sustainability Coordinator in the Facility.

This loan is intended to support environmentally and socially sustainable economic projects to support the Company's growth, which will strengthen Chandra Asri Group's leadership in the chemical and infrastructure sectors. Through the integration of financial strategy with sustainability goals, Chandra Asri Group, as a dedicated growth partner, is confident in leading sustainable business practices.

Andre Khor, the CFO of Chandra Asri Group, expressed his excitement about collaborating with top financial institutions from various regions. He mentioned that they look forward to using this funding to boost sustainable economic projects. He also extended his gratitude to OCBC for their exceptional role as the advisory bank and MLAUB, highlighting how their expertise and support have been crucial in helping Chandra Asri Group make significant strides responsibly. Tan Teck Long, the Head of Global Wholesale Banking at OCBC, shared his enthusiasm for supporting Chandra Asri with this market-leading facility, which will help the Group grow in an environmentally friendly way. He noted that this partnership showcases OCBC's commitment to leveraging innovative financial solutions to assist clients in achieving their goals and transitioning to a low-carbon world.

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Tag: Andre Khor BANK HSBC INDONESIA Bank Mandiri Chandra Asri Group