Sinar Mas Land Secures Vital Financing for Serpong-Balaraja Toll Road
Jakarta. A joint venture led by property developer Sinar Mas Land has secured a Rp 4.3 trillion ($320 million) syndicated loan from state-owned lenders to develop a 30-kilometer toll road in Banten.
The joint venture, known as Trans Bumi Serbaraja, on Thursday (15/12) started the construction of the toll road to connect Serpong, a satellite city of Jakarta, to adjacent towns of Legok, Tigaraksa and Balaraja in Tangerang district.
"Serpong-Balaraja toll will ease the burden that had been borne by the roads in Tangerang and will speed up new developments in the district," director of Bank Negara Indonesia Anggoro Eko Cahyo said in a statement on Friday.
BNI acts as a joint lead mandated arranger in the loan syndication with Bank Mandiri — Indonesia's largest lender by assets. They are joined by the government's infrastructure financing company Sarana Multi Infrastructure.
Dhony Rahajoe, senior executive at Singapore-listed Sinar Mas Land, said the loan will finance most of the construction and land acquisition costs estimated at Rp 6.2 trillion in total. Trans Bumi Serbaraja's shareholders will contribute the remaining Rp 1.9 trillion in equity.
Sinar Mas' local unit Bumi Serpong Damai, which develops the BSD City township in Serpong, owns 50 percent of Trans Bumi Serbaraja.
Astratel Nusantara, a wholly subsidiary of Indonesia's largest car distribution conglomerate Astra International, and media conglomerate Kompas Gramedia, have equal split of the remaining shares in the company.
Dhony said the the first segment of the toll road, which links Serpong and Legok, will be ready in 2018.
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