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Maybank in USD330 million Indonesian cross border deal

30 January 2012

4 min read

Maybank Group has concluded the syndication of USD330.6 million Syndicated Term Facility for PT Bajradaya Sentranusa (BDSN). Maybank Group entities namely PT Bank Internasional Indonesia Tbk (BII), Maybank Investment Bank Berhad and PT Bank Maybank Syariah Indonesia (MSI) were the joint mandated lead arrangers and bookrunners while BII, Maybank Islamic Berhad and MSI were the joint underwriters for this transaction. PT Bank Bukopin Tbk and Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank) were also participant lenders in this transaction.

The 10-year facility is segregated into dual-currency conventional tranches of USD187.5 million and IDR 400 billion as well as USD100 million in an Islamic tranche. Proceeds will be used to take over the entire existing project loans for the construction of the 2x90 MW Asahan 1 Hydroelectric Power Plant (Asahan 1 Hydroplant) located in North Sumatra, Indonesia.

(L to R) Mikrowa Kirana, Director of Bank Bukopin, Abdul Farid Alias, Deputy President & Head, Global Wholesale Banking, Maybank, Husni Sabar, President Director of PT Bajradaya Sentranusa, Rahardja Alimhamzah, Director of BII, Dharma K. Satryo, Director of Maybank Syariah Indonesia and Yudhi Trilaksono, Division Head of Indonesia Eximbank.

Speaking at the ceremony held in Jakarta, Husni Sabar, President Director of BDSN said, “We are pleased to have reached this milestone despite the general uncertainty in global financial markets. This transaction will mark a long and beneficial relationship between BSDN and the Maybank Group.” Abdul Farid Alias, Deputy President & Head, Global Wholesale Banking, Maybank, described the conclusion of the syndication as a momentous chapter in the Group’s robust track record of regional fund raising activities.

“This transaction marks a continuation of Maybank Group's support for its International Currency Business Unit (ICBU) platform, which is an initiative under the Malaysian International Islamic Financial Centre (MIFC) by the Malaysian Government,” added Abdul Farid

“Given our significant regional reach, we are seeing greater opportunities in cross-border financing, including in Islamic banking. In addition our strong capital base enables us to fund large infrastructure projects and we are seeing this as a new growth market for our Global Wholesale banking business. Also, given the size of the Muslim majority population in Indonesia, we are confident that we are able to support the growth of the Islamic finance in the country and strengthen our position further in the region,” concluded Abdul Farid

Meanwhile, Rahardja Alimhamzah, Director of BII said, “By supporting this strategic project, we hope to make a significant contribution to the supply of power in Sumatra. Sufficient electric supply will positively impact the economic growth not only in Sumatra but also Indonesia.”

BDSN is the independent power producer which builds, owns and operates the Asahan 1 Hydroelectric Power Plant under a 30-year Power Purchase Agreement (PPA) with PT Perusahaan Listrik Negara (Persero).

The Asahan 1 Hydroplant achieved Commercial Operation Date on 18 January 2011 and the electricity generated by the Asahan 1 Hydroplant is used by amongst others ,export-oriented industries situated in North Sumatera, hence directly contributing towards economic growth in the region.