The delayed Cikampek–Palimanan toll road project, in Indonesia, has secured debt from 22 banks and financial institutions, which will provide a loan facility worth IDR 8.8 trillion (€706 million; $915 million) to developer Lintas Marga Sedaya to start construction of the road.
The greenfield toll road requires a total investment of IDR 12.5 trillion, of which 70 percent will come from bank loans and the rest from the developer.
The project consists of the design, construction, operation, maintenance and financing of a 116-kilometre, inter-urban highway in the frontier area of West Java Province on a 35-year concession.
Bank Central Asia (BCA) and Bank DKI acted as joint mandated lead arrangers and book runners for the loans, which have a maturity of 15 years.
Other lenders involved in the syndicated deal include Bank Panin, Bank Jabar Banten, ICBC Bank and Sarana Multi Infrastructure. The Export Import Bank of Malaysia is providing a $95 million loan, Indonesia Infrastructure Finance is lending IDR 500 billion and BCA is chipping in with IDR 3.2 trillion.
The original deadline to secure the credit agreement was April 27.
Developer Lintas Marga Sedaya is an Indonesian special purpose company, 55 percent of which is owned by Malaysian PLUS Expressways, one of the largest toll road operators in Asia Pacific with over 1,000 kilometres in operation. A consortium of three Indonesian companies, called Baskhara Utama Sedaya, also holds a minority stake in the developer.
The Cikampek–Palimanan toll road is expected to improve connectivity between the capital, Jakarta, and Surabaya, Indonesia’s second largest city.