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Bank of China contributes to $750 million syndicated loan to finance solar, wind, and other renewable energy projects (Linked to Record ID#102646)
| Funder | Bank of China (BOC) |
|---|---|
| Recipient Organization | PT Perusahaan Listrik Negara (Persero) (PLN) |
| Country | Indonesia |
| Start Date | Dec 23, 2022 |
| End Date | Nov 21, 2028 |
| Duration | 2,160 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 102653 |
Grant Description
China Construction Bank and BOC and contributions to $750 million syndicated loan to finance solar, wind, and other renewable energy projects On December 23, 2022, PT Perusahaan Listrik Negara (Persero) (PLN) — an Indonesian state-owned power company — signed a $750 million syndicated loan agreement (with green shoe option) with eight mandated lead arrangers and bookrunners (MLABs): Bank of China (BOC), China Construction Bank Corporation (CCB), CIMB Bank, DBS Bank, Mizuho Bank, Oversea-Chinese Banking Corporation (OCBC), Sumitomo Mitsui Banking Corporation (SMBC), and United Overseas Bank (UOB).
Then, on April 6, 2023, 24 additional lenders — Taiwan Business Bank, KB Bukopin, Chang Hwa Commercial Bank, Norinchukin Bank, Gunma Bank, Taiwan Cooperative Bank, Mega International Commercial Bank Co, E.Sun Commercial Bank, Export-Import Bank of Republic of China, Hyakugo Bank, Chugoku Bank, Bank of Kaohsiung, Land Bank of Taiwan, Hua Nan Commercial Bank, Bank of the Philippine Islands, Bank of Taiwan, Citibank, Chiba Bank, AfrAsia Bank, First Commercial Bank, SBI Shinsei Bank, Bank SBI Indonesia, CTBC Bank, and KEB Hana Bank — joined the facility agreement in general syndication.
The borrower is expected to use the proceeds of the loan to finance solar, wind, and other renewable energy projects.
Staff Comments
- The individual financial contributions of the members of the syndicate are unknown. For the time being, AidData assumes equal contributions ($23,437,500) across the 32 known members of the syndicate.
- Norton Rose Fulbright served as a legal adviser to the lenders and Baker McKenzie served a legal adviser to the borrower.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
- The MLABs were expected to down sell 30% of their holds to other lenders joining in the loan. However, the loan received an overwhelming response, resulting in all but 2 MLABs selling more than 50% of their committed amount in general syndication.
Sources & References
- Baker McKenzie advises PT PLN (Persero) on securing a USD 750 million (with green shoe option) syndicated green loan
- Perusahaan Listrik Negara (PLN) (Persero) - Green Loan
- PLN secures $750m syndicated green loan
- Konsisten Dorong Transisi Energi
- PLN Raih Penghargaan Internasional The Best Green Loan
- PLN signs green loan with 32 lenders
- Indonesia Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
PT Perusahaan Listrik Negara (Persero) (PLN)
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