OCBC takes part in $116m debt financing for Indonesian toll road operator

The 18-year convertible debt facility was provided by OCBC Bank's mezzanine arm together with a consortium of investors including Saratoga Asia Fund III.

BUS has a 45% stake in Lintas Marga Sedaya (LMS), which was awarded a concession to build and operate the Cikampek-Palimanan toll road (CPTR) by the Indonesia's Ministry of Public Works.

OCBC Bank also recently completed an IDR1.16 trillion bank guarantee facility for Karabha Gryamandiri and Nusa Raya Cipta (KG-NRC Consortium), which are the main contractors responsible for the construction works of the CPTR, through its Capital Markets team and PT Bank OCBC NISP Tbk,

The bank guarantee facility, arranged with Bank Central Asia and Standard Chartered Bank Jakarta Branch, comprises an advance payments guarantee and performance bonds that will be used to satisfy LMS's bank guarantee requirements in respect of the construction works related to the project.

"As infrastructure development is one of the key priorities of the Indonesia government for the next couple of years, we are glad to have the opportunity to tap into this growth segment," said Than Su Ee, head of the mezzanine capital unit at OCBC Bank. "This deal is a testimony of yet another successful collaboration with Bank OCBC NISP Tbk that enables us to support Indonesia's infrastructure development which is core to it achieving sustainable economic growth."

At 116.75 kilometers on completion, the CPTR will be the longest road in the Trans Java toll road network. It requires total investment of IDR 12.56 trillion of which 70% will be financed by loans from a consortium of Indonesian and Malaysian banks. The remaining 30% will come through shareholders equity and mezzanine loans from BUS and PLUS Expressways International. BUS will use the proceeds from the convertible debt financing to fund its mezzanine loan contribution into LMS.

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• Topics
• Southeast Asia
• Infrastructure
• Mezzanine
• Singapore
• Indonesia
• Infrastructure
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