Manila, Philippines (BBN)– The Asian Development Bank (ADB) is extending $200 million in loans to assist Indonesia expand access to trade finance and to embark on major energy efficiency improvements in export industries.
The ADB Board of Directors on Friday approved the funding for Indonesia Eximbank – a quasi-sovereign institution, and the country’s official export credit agency which provides financing, insurance and guarantees, and advisory services to exporters.
“It includes a direct A-loan of $100 million, and a B-loan of $100-million from commercial banks with ADB acting as lender of record. Technical assistance grants of $1.45 million, administered by ADB, are also being extended to support the project,” an ADB announcement said.
The loans will allow Eximbank to extend US dollar term trade finance and working capital to clients and allow the agency to refinance some high interest, short term loans provided during the global financial crisis.
A $30 million tranche of the A-loan is earmarked to support energy efficiency plant retrofits and equipment upgrades by exporters, according to the announcement.
The A-loan, from ordinary capital resources will have a tenor of five years, at an interest rate of six months LIBOR + 1.70 percent. The B-loan, with a tenor of three years, will be financed by international banks with terms and conditions to be mutually agreed by the participating banks, Eximbank and ADB.
BBN/SSR/AD-25Mar11-5:30 pm (BST)
