Indonesia Eximbank secures A$713 million loan from ICBC
(24 September 2015 – Indonesia) Indonesia’s export-import financing agency, Indonesia Eximbank, has secured US$500 million (A$713 million) in a club deal loan from the Industrial and Commercial Bank of China (ICBC) and Hong Kong-based sister company ICBC Asia to support its export financing activities.
The loan is a first phase of a memorandum of understanding (MoU) on loan facility worth $20 billion signed in Beijing earlier this year between ICBC and the Indonesian government, for the country’s economic development.
“This agreement marks our commitment to become a financial bridge between Indonesia and China as we want to continue our role in helping this country’s economy to grow,” ICBC Indonesia president director Shen Xiaoqi said in a speech earlier this week.
In addition to supporting President Joko Widodo’s program to boost infrastructure, Xiaoqi said the bank also aimed to provide comprehensive financing for Indonesian state firms, including Indonesia Eximbank, which is fully owned by the government.
ICBC was also committed to providing more financing for Indonesia Eximbank in the future, including in renminbi, as trade relations between both countries remain growing amid global weakening, Xiaoqi said.
Surya Wijaya, deputy head of ICBC Indonesia’s strategic management and transformation office, said recently that the bank had booked around Rp 26 trillion (A$2.56 billion) to Rp 27 trillion in outstanding loans so far, growing slightly from Rp 24 trillion at the end of last year.
The bank has set loan targets in its business plan to reach between Rp 28 trillion and Rp 29 trillion by the end of this year as it remains cautious amid global and domestic economic challenges, Surya said.
“We are still committed to providing loans for infrastructure projects, especially those constructed under state-owned firms,” he said.
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