JAKARTA. PT Smartfren Telecom Tbk (FREN), one of the biggest telecommunication service providers in Indonesia, has signed a syndicated loan agreement with a subsidiary and several banks.

James Wewengkang, Corporate Secretary of FREN, said that the subsidiary involved in this facility agreement is PT Smart Telecom (Smartel).

The syndicate of banks that will provide financing facilities includes PT Bank Central Asia Tbk (BBCA), PT Sarana Multi Infrastruktur (SMI), PT Bank Digital BCA, PT Bank Permata Tbk (BNLI), PT Bank CIMB Niaga Tbk (BNGA), and PT Indonesia Infrastructure Finance (IIF).

BBCA and SMI are appointed as original mandated lead arranger and bookrunner in this credit facility agreement. In addition, BBCA also acts as a facility and guarantee agent in this credit agreement.

“The loan facility is set to a maximum of IDR 10 trillion, which will be allocated for refinancing existing credit facilities of both the company and Smartel,” added Wewengkang in the information disclosure in Indonesia Stock Exchange (IDX).

In addition, Wewengkang also mentioned that the received syndicated loan facility will be utilised for the auction of frequency band spectrum, as well as FREN or Smartel’s working capital.

For the record, the syndicated loan facility agreement signed by FREN and Smartel has a tenor of 7 years. The interest rate agreed for this facility is 3 months of JIBOR + specified margin. (KR/ZH)