Bank Mandiri Persero Tbk PT : Extends Rp 625 Billion in Financing to Pakuwon Jati
September 14, 2014 at 10:03 pm EDT
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Bank Mandiri Extends Rp 625 Billion in Financing to Pakuwon Jati
09/09/14
Jakarta, 9 September 2014 - Bank Mandiri and BCA have joined forces to provide a Rp 1.25 trillion syndicated loan to Pakuwon Jati to finance the construction of Tunjungan Plaza 5 and Tunjungan Plaza 6, and the development of Tunjungan Plaza 4 in Surabaya. Bank Mandiri is contributing 50% of the loan, or Rp 625 billion.
The loan agreement was signed in Surabaya on Tuesday (9 Sept) in the presence of Bank Mandiri's Director of Corporate Banking, Fransisca Nelwan Mok, BCA Corporate Director, Dhalia M. Ariotedjo, and the ultimate owner of Pakuwon Jati, Alexander Tedja. Mandiri and BCA are the joint mandated lead arrangers of the syndicated loan.
The loan has a term of 8 years, including a grace period of 2 years, and will be used to finance the construction of Tunjungan Plaza 5 and Tunjungan Plaza 6, and the development of Tunjungan Plaza 4 as part of an integrated shopping mall, hotel, and apartment project forming part of the Tunjungan City business district in the heart of Surabaya.
"The rapid economic growth of Surabaya as one of Indonesia's metropolitan cities needs to be balanced with the necessary supporting infrastructure, such as shopping centers that are integrated with other public facilities, including hotels and apartment complexes. We are confident that this project will become one of Surabaya's principal icons," said Fransisca N. Mok.
Fransisca said that Bank Mandiri's participation in the loan was intended to help the Pakuwon Jati Group grow its business and expand its market share. "We hope to continue strengthening this collaboration through a variety of financial and non-financial cooperative ventures, including harnessing the opportunities provided by the Pakuwon Jati business network," Francisca said.
Going forward, she said, the property sector is expected to continue growing with increasing wealth levels in Indonesia. "This is one reason why Bank Mandiri is focusing on property as a prospective sector for lending in the future," she explained. During the first half of 2014, Bank Mandiri extended loans of Rp 14.98 trillion to the property and construction sectors, up 33.9% on the same period last year. For the property sector alone, lending amounted to Rp 7.57 trillion, 21.5% higher than in the first half of 2013.
PT Bank Mandiri (Persero) Tbk (the Bank) is an Indonesia-based banking company. The Bank's segments include Corporate Banking, Commercial Banking, Government Institution, Retail Banking and Treasury & International Banking. The Corporate Banking segment includes loans, customer deposits and other transactions to corporate customers. The Commercial Banking segment includes loans to the medium scale and automotive sector, customer deposits and other transactions to commercial customers. The Government Institution segment provides loans, customer deposits and other transactions to government entities and pension plans of state-owned enterprises. The Treasury & International Banking segment includes foreign exchange, money market, fixed income, international banking business, capital markets and the overseas branches. Its geographical segments include Indonesia, Asia (Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia), Western Europe (United Kingdom) and Cayman Islands.
PT BANK MANDIRI (PERSERO) TBK 
