Bank Mandiri Persero Tbk PT : Boosts Syndicated Lending to Infrastructure Sector

Jakarta, February 2015 - Bank Mandiri continues to support the efforts to improve Indonesia's infrastructure through syndicated financing schemes involving both national and foreign financial institutions. This is evident from the fact that syndicated lending to infrastructure projects amounted to Rp 15.3 trillion during 2014, up 131% from Rp 6.6 trillion the previous year.

Syndicated lending to the infrastructure sector during 2014 accounted for 37% of all syndicated loans provided by Bank Mandiri last year, the value of which totaled Rp 41.6 trillion. Among the infrastructure schemes that received funding were highway, railway, seaport, airport, and power plant and transmission projects throughout Indonesia.

Bank Mandiri Director of Corporate Banking, Fransisca Nelewan Mok, said the Bank's commitment was in line with the government's program to accelerate infrastructure development.

"Given the nature of infrastructure projects, which require substantial long-term funding, the syndicated financing option is the right choice. It also helps to mitigate project risk," said Fransisca.

Fransisca said that the Bank plans to further increase its support for the infrastructure sector this year, including airport, seaport, power, railway and highway projects.

"In determining the infrastructure projects to be financed, we obviously conduct feasibility studies and take into consideration the urgency of the project for the community," said Fransisca.

Besides infrastructure, Bank Mandiri also will focus its syndicated lending on the health, agriculture, consumer goods and automotive sectors.

Regional financial publication Alpha Southeast Asia recently named the Rp 3.04 trillion syndicated loan provided in November last year to PT Kereta Api Indonesia (KAI) and PT KAI Commuter Jabodetabek (KCJ) as "Best Loan Deal of the Year in Southeast Asia".

According to the magazine, the financing, which was provided by Bank Mandiri and its syndication partners, provided significant benefit to the community by supporting the provision of mass transportation so as to facilitate the movement of people and help reduce traffic congestion.