Mandiri, SMI Grant Rp 1.7t Syndicated Loan to Train Manufacturer INKA
Jakarta. State-owned Bank Mandiri and Sarana Multi Infrastruktur have agreed to provide a syndicated loan facility worth Rp 1.69 trillion ($127 million) to state-owned train manufacturer Industri Kereta Api, or INKA, to build 438 rail cars.
"We believe people really need affordable and reliable mass transportation to reduce inefficiencies, so they can lower production and distribution costs," Alexandra Askandar, senior executive vice president for corporate banking at Bank Mandiri, said in a statement on Friday (02/06).
Mandiri will contribute Rp 1.19 trillion towards the syndicated loan, while Sarana Multi Infrastruktur, a state-owned financing company focused on infrastructure development, will provide the rest.
The loan will be disbursed in two tranches, subject to the procurement process. The syndicated loan has a tenor of 20 months.
Bank Mandiri has helped finance several infrastructure projects in Indonesia worth Rp 118.7 trillion as of March, up 26.6 percent from the same period last year. Of that amount, Rp 27.6 trillion was destined for projects in the transportation sector.
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