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CDB provides $1.8 billion loan for OKI Pulp and Paper Mill Construction Project
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | PT OKI Pulp & Paper Mills (OKI) |
| Country | Indonesia |
| Start Date | Oct 03, 2013 |
| End Date | May 16, 2027 |
| Duration | 4,973 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 70724 |
Grant Description
CDB provides $1.8 billion loan for OKI Pulp and Paper Mill Construction Project On October 3, 2013, China Development Bank (CDB) and PT OKI Pulp & Paper Mills (OKI) — a special purpose vehicle and subsidiary of Asia Pulp & Paper (APP) — signed a $1.8 billion loan agreement for the OKI Pulp and Paper Mill Construction Project.
It was secured by (collateralized with) the 35.29% ownership stake of PT Pabrik Kertas Tjiwi Kimia Tbk. (TKIM) in PT OKI Pulp & Paper Mills (OKI). The total cost of the project was $2.63 billion and it was financed with 70% debt and 30% equity. The equity component ($800 million) was funded by capital raised by the shareholders.
The purpose of the project was to construct a pulp and paper mill in the city of Palembang within Ogan Komering Ilir Regency and South Sumatra Province.
Upon completion, it was envisaged that the mill would have an annual production capacity of 2 million tons of hardwood pulp and 500,000 tons of paper. The project was also expected to bring 10,000 new jobs to the local area. China Energy Engineering Corporation was the contractor responsible for implementation.
On February 9, 2015, the construction of a power station at the pulp and paper mill began. Then, in May 2016, the two production lines at the pulp and paper mill were completed and put into production.
Staff Comments
- The Chinese project title is 金光集团印尼南苏门答腊OKI县 200万吨纸浆厂 or OKI纸浆厂 or OKI造纸厂项目.
- Asia Pulp & Paper (APP) is a subsidiary of Sinar Mas Group (or Sinarmas Group). Asia Pulp & Paper Group (APP) acquired PT OKI Pulp & Paper Mills (OKI) in 2013 as part of its expansion plan to increase its production capacity.
- 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
- APP likely get more loans from China’s banks to fund new Sumatra pulp mill
- 中国能建承建的印尼浆厂抄浆2号线投运
- 恭贺印尼金光OKI纸浆厂两条纸浆生产线全部投产
- 广电工程局开建印尼南苏门答腊金光OKI纸浆厂自备电站安装工程
- 金光集团APP投资26亿美元建全球最大浆厂
- US $ 100 Million Capital Cost of Tjiwi Kimia
- Asia Pulp & Paper Group (APP) Statement on PT OKI Pulp & Paper Mills (OKI)
- China Development Bank Backs Indonesian Pulp and Paper Sector in Landmark Deal With APP
- OKI Pulp and Paper
- 国开行：推进中印尼合作标志性项目建设
- China Development Bank has Issued a Total of 15 Billion US Dollars in Loans to Indonesia
- 全球最大纸浆厂投产在即 国际纸浆上涨压力有望缓解
- 国家开发银行厦门分行:与千岛之国合作促联通
- 跟踪APP全球最大浆厂将于2016年年中投产
- Kiwoom Securities: Minat Beli Asing Pertahankan Posisi IHSG
- Anak usaha TKIM menyasar ekspor ke China
- Euromoney Asia_ The Untouchables – Indonesia's Widjajas.pdf
- Annual Report 2013, https://www.panin-am.co.id/Resources/Forms/Morning%20News%202013-09-25.pd
- China
- Indonesia companies agree partnerships worth $28.2 billion
- Brief Summary/Kesimpulan Singkat Working Group on Oil
- Gas and Coal
- OKI’s Environmental Performance
- SUSTAINABILITY COMMITMENT 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 OKI Pulp & Paper Mills (OKI)
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