RECORD OF TOLL ROAD CREDIT SYNDICATION

JAKARTA - As many as 16 banks and nonbank financial institutions are involved in credit syndication worth Rp. 11.3 trillion for the construction of the 36.8-kilometer Jakarta-Cikampek II toll road. This credit syndication is the biggest record for the construction of highways.

In this credit syndication, it is divided into two stages, namely trance I and II. In addition, there are two credit schemes used, namely conventional and mutanaqisah musharaka (MMQ) or sharia.

This syndication has a period of 15 years, including a grace period of 1 year. Credit interest uses an average 3-month tenor deposit plus a 4% margin for three banks, namely PT Bank Mandiri Tbk, PT Bank Central Asia Tbk, and PT Bank Rakyat Indonesia (Persero) Tbk.

Meanwhile, the construction of the Jakarta-Cikampek (Japek) II Toll Road has reached 40.29%. PT Jasamarga (JJC) as manager targets the project to be completed by March 2019. The infrastructure development is expected to reduce congestion by 40%.

In this case the guarantee is the concession right from the Japek II Elevated toll road. In addition, the guarantee in this syndicated loan is all toll road revenues with a total collateral value of Rp. 16.2 trillion.

Bank Mandiri Corporate Banking Director Royke Tumilaar said participation in syndication was the company's consistency in supporting synergies between SOEs in the government's strategic program, especially accelerating the provision of key infrastructure.

"We have a strong commitment in the development of important infrastructure projects, such as toll road construction, and construction of airports and ports," Royke said in Jakarta on Tuesday (31/7).

In the syndication, Bank Mandiri disbursed syndicated loans of Rp 2.1 trillion or 18.48% of the total funding of Rp 11.36 trillion.

Until the first semester of 2018, Bank Mandiri had channeled toll road construction loans of Rp 10.6 trillion, up 26% compared to the same period the previous year of Rp 8.4 trillion.

Royke added, this company is present in 75% of toll road projects. This is done in syndication, with both state-owned banks, private banks and non-bank financial institutions.

Head of the BUMN Division & Government Agencies of PT Bank Negara Indonesia (Persero) Tbk. AAG Agung Dharmawan said, in this syndication the company was appointed as the joint direction holder and bookrunner together with BRI, BCA, Bank Mandiri, CIMB Niaga and PT Sarana Multi Infrastruktur (SMI).

"BNI not only provides syndicated financing, but also supports all Jasa Marga's business activities through the provision of Corporate Cards and E-Payment services for toll roads," he said.

BIGGEST LOAN

Loans for JCC are the largest syndication for toll road projects, beating the record held by PT Lintas Marga Sedaya while working on the Cikopo - Palimanan toll road. LMS in 2012 received a loan of Rp8.8 trillion from a syndicate of 22 banks.

Djoko Dwijono, President Director of JJC, said that the total investment of Japek II Elevated reaches Rp. 16.23 trillion and construction has begun in March 2017. Until the end of July 2019, construction progress has reached 40.2% and it is expected that this project will be completed in March 2019.

Djoko emphasized that the toll road above the existing Jakarta-Cikampek toll road is an urgent need to break the traffic density on the toll road. He noted, the density ratio (V / C ratio) on the Jakarta - Cikampek toll road had reached 1.4 or exceeded the normal threshold of 0.8.

"With the addition of the Elevated Japek lane, the V / C ratio drops to 0.9, which is why South Japek is needed," he said.

In addition, PT Jasa Marga (Persero) Tbk. targets a new loan agreement for three new toll roads in the next 5 months. Jasa Marga also targets two new toll roads to obtain loan disbursements by 2019.

Jasa Marga President Director Desi Ariyani said that the three toll roads that are expected to be able to get loans from banks are Kunciran - Cengkareng, Serpong - Cinere, and Balikpapan - Samarinda.

Meanwhile, the Jakarta - Cikampek II Selatan and Probolinggo - Banyuwangi (Probowangi) segments are projected to receive loans in 2019.

He said that previously Jasa Marga through its subsidiary PT Marga Trans Nusantara had also received a syndicated loan of Rp.3.3 trillion.

Syndication of 16 banks and local financial institutions also channeled loans of Rp. 11.36 trillion for PT Jasamarga Jalanlayang Cikampek (JJC), holder of the Jakarta-Cikampek II Elevated toll road concession.

"There are several more that have not been signed but financial reserves have been seen. The 3 segments that we are targeting this year while for Japek and Probowangi may be next year," he said after signing a syndicated loan for JJC in Jakarta on Tuesday (31) / 7).

Based on monitoring data from the Toll Road Regulatory Agency, investment in the Kunciran - Cengkareng segment reached Rp3.5 trillion, Serpong - Cinere Rp.2.21 trillion, and Balikpapan - Samarinda Rp9.97 trillion.

As a result, the three joint investment segments reached Rp. 15.68 trillion. With a loan rate of 70% as applied to toll road project loans, loans for these three parts are estimated to reach IDR 10.97 trillion.