Bank DKI Leads BPD SI Syndicated Credit, Distributes PT Indah Kiat Pulp & Paper Investment Credit Worth IDR 2 Trillion
Jakarta, November 15 2021Published: November 15, 2021
Increasing synergy and collaboration, PT Bank DKI and PT Indah Kiat Pulp & Paper, Tbk (IKPP) signed a syndicated investment credit agreement worth IDR 2 trillion with 12 Regional Development Banks (BPD), namely Bank Sumut, Bank Jatim, Bank Nagari, Bank Sumsel Babel, Bank Maluku Malut, Bank Papua, Bank Kalteng, Bank Sulselbar, Bank Kalsel, Bank Bengkulu, Bank NTT and Bank SulutGo. In this syndication, Bank DKI acts as Mandated Lead Arranger, as well as acting as facility agent, collateral agent, escrow agent and creditor.
The signing of the Syndicated Credit agreement was witnessed by the President Director of Bank DKI, Fidri Arnaldy, the Director of Finance of Bank DKI, Romy Wijayanto, the Director of Finance of IKPP, Kurniawan Yuwono and representatives of the Directors of each BPD in Jakarta, (15/11).
Main Director of Bank DKI, Fidri Arnaldy, explained that syndicated credit distribution was given in the form of refinancing investment credit to IKKP located on Jalan Raya Minas – Perawang Km.26, Pinang Sebatang Village, Tualang District, Siak Regency, Riau.
Fidri added that this syndicated credit distribution was based on the consideration that the pulp & paper industry in Indonesia was still considered very prospective. Indonesia is one of the countries that has the largest sources of raw materials and comparative advantages in terms of productivity. Apart from that, pulp production in Indonesia is ranked 8th and 6th in the paper industry.
"We are collaborating on credit syndication with 12 other BPDs," he added. In detail, Fidri explained, Bank DKI distributed a portion worth IDR 500 billion. Meanwhile, Bank Sumut and Bank Jatim each received Rp. 270 billion, Bank Nagari and Bank Sumsel Babel Rp. 175 billion, Bank Maluku Malut Rp. 110 billion, Bank Papua Rp. 95 billion, Bank Kalteng, Bank Sulselbar and Bank Kalsel Rp. 85 billion each and Bank Bengkulu, Bank NTT and Bank SulutGo Rp. 50 billion each with total participation of Rp. 2 trillion.
Previously, Bank DKI had distributed credit to PT Indah Kiat Pulp & Paper, Tbk both bilaterally and in syndication, including the Power Plant Refinancing Investment Credit Syndication worth IDR 1.4 trillion in 2018 and the Pulp Making Machine 8 Refinancing Investment Credit Syndication amounting to IDR 1.75 trillion with Bank DKI's portion of credit distribution amounting to IDR 600 billion in 2020, all of which was in smooth collectibility.
"By signing this syndicated credit agreement, it is hoped that it can become a stimulus for economic growth in the country during this pandemic," said Fidri. He added, apart from providing syndicated credit with BPD, Bank DKI is also accelerating the provision of credit to the MSME segment, which grew by 28% yoy (year on year) with a portfolio of IDR 1.30 trillion in October 2020 to IDR. 1.68 trillion in October 2021. Bank DKI's total credit provision up to October 2021 is IDR. 36.5 trillion.