Completed Development AidData Chinese Aid

CDB provides $700 million loan to PT Bank Rakyat Indonesia (Persero) Tbk for infrastructure construction activities (Linked to Record ID#66758)

¥700K RMB

Funder	China Development Bank (CDB)
Recipient Organization	PT Bank Rakyat Indonesia (Persero) Tbk
Country	Indonesia
Start Date	Sep 16, 2015
End Date	Mar 07, 2027
Duration	4,190 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66757`

Grant Description

CDB provides $700 million loan to PT Bank Rakyat Indonesia (Persero) Tbk for infrastructure construction activities On September 16, 2015, China Development Bank and PT Bank Rakyat Indonesia (Persero) Tbk — an Indonesian state-owned bank — signed a $1 billion loan facility agreement to finance long-term infrastructure projects and industries in Indonesia and cross-border transactions between Indonesia and China.

The loan was divided into two facilities (tranches): a $700,000,00 tranche (Tranche A) and an RMB 1,906,080,000 (Tranche B).

📋 Loan / Grant Terms

📅 Maturity10 years

⏳ Grace Period3 years

📋 Loan / Grant Terms

📅 Maturity10 years

⏳ Grace Period3 years

Tranche A principal installments were to be paid on April 29, 2016 by $11,197,669.15 (full amount) up to April 30, 2018 and henceforth amounted to $42,934,110.28 (full amount) from October 30, 2018 until the maturity date.

Tranche B principal installments amounted to RMB 127,072,000 (full amount) and were to be paid every six months starting on September 16, 2018 until the maturity date.

The financial covenants in this loan agreement, among others, included maintaining the following financial ratios: Minimum Capital Adequacy Ratio (CAR) of 9%, Minimum Tier 1 ratio of 6%, Minimum Core Tier 1 ratio of 5%, Minimum Statutory Reserve in IDR ratio (GWM Rupiah) of 6.5%, Maximum Non-Performing Loan (NPL) ratio of 5%, Minimum Return On Assets (ROA) ratio of 0.6%.

The CDB loan was fully drawn down by the borrower.

Drawdowns on Tranche A were made on October 30, 2015 and November 6, 2015 and they amounted to $223,953,383 (full amount) and $476,046,617 (full amount), respectively.

Drawdowns on Tranche B were made on October 30, 2015 and November 6, 2015 amounted to RMB 609,818,661 (full amount) and RMB 1,296,261,339 (full amount), respectively.

According to the President of BRI, 62% of the loan proceeds supported power plant development; 25% supported toll roads; and 13% supported agribusiness.

📋 Staff Comments

On September 16, 2015, China Development Bank signed multiple loan agreements worth $3 billion with three of Indonesia's state owned banks: Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia in order to support infrastructure construction activities in Indonesia. Each bank secured a $1 billion loan (70% denominated in USD and 30% denominated in RMB) with a 10-year maturity and 3-year grace period. These loans disbursed in October 2015, November 2015, and December 2015. Each of the following sub-projects total to $1 billion: (1) Bank Mandiri's USD tranche is captured via Project ID#66753 and the RMB tranche part is captured via Project ID#66754; (2) Bank Negara Indonesia's USD tranche is captured via Project ID#66755 and the RMB tranche is captured via Project ID#66756; and (3) Bank Rakyat's USD tranche is captured via Project ID#66757 while its RMB tranche is captured via Project ID#66758. None of these CDB loans to Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia are included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
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.

📚 Sources & References

印尼3家国营银行获中国国家开发银行30亿美元贷款
国开行：推进中印尼合作标志性项目建设
Annual Report 2017
Annual Report 2018
Bank BRI 2015 Annual Report
House questions use of loan facility from Chinese Bank
China's Overseas Development Finance
Brief Summary/Kesimpulan Singkat Working Group on Oil
Gas and Coal
Annual report 2016 Bank BRI
Annual report 2020 Bank BRI 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.