(Bloomberg) -- Bank Negara Indonesia is raising a $600 million four-year club loan from six banks, according to people familiar with the matter, in what would be one of the largest offshore facilities from the country this year.
Bank of America Corp., CIMB Bank Bhd., CTBC Bank Co., DBS Group Holdings Ltd., HSBC Holdings Plc and Oversea-Chinese Banking Corp. are providing the loan, according to the people, who asked not to be identified discussing private matters. The proceeds will be used for refinancing and general corporate purposes, the people added.
“We look into various sources for general funding and debt refinancing as part of our funding plan,” said Okki Rushartomo, corporate secretary for BNI, without elaborating further on the details of the loan.
The deal is a rare bright spot for dollar borrowing from Indonesian companies, after months of muted supply amid high dollar funding costs and a national election earlier this year.
Dollar loans from Indonesian borrowers have plunged to an eight-year low, hitting around $9.4 billion so far this year, a 34% decline from the same period in 2023, according to Bloomberg-compiled data. This figure excludes bilateral deals, which involve just one bank lender.
State-owned mineral resources company Mining Industry Indonesia has raised the largest dollar facility from the country so far this year, closing a $1.5 billion dual-tranche loan in September. Bank Rakyat Indonesia signed a $1 billion facility in the same month, including its debut social tranche as part of the deal.
BNI last turned to club lenders in September 2022, when it raised $500 million from a three-year facility, according to Bloomberg-compiled data.
--With assistance from Prima Wirayani.
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