PT Bank Mandiri (Persero) has signed a $105m loan facility with the Asian Development Bank (ADB) to strengthen its financing structure. The borrowing consists of a direct loan of $75m with a seven-year maturity from ADB and another $30m loan from global financial institution, ING Bank NV, which carries a maturity of five years.
Thomas Arifin, director of treasury & international banking at Bank Mandiri, said: “ADB is known as a multilateral institution with a strong commitment to addressing environmental issues and focuses on promoting economic development and poverty reduction in Asia.
“The loan facility is very timely given Bank Mandiri’s plan to expand at a time when the world economy has not yet fully recovered from the global financial crisis. The loan should allow Bank Mandiri to support the development of environmentally friendly projects and contribute to economic development in Indonesia. We hope to become a pioneering eco-friendly financial institution.”
Philip Erquiaga, director general of private sector operations department at ADB, said: “ADB sees that Bank Mandiri has the capacity to use the loan facility to meet the growing demand for financing in areas such as infrastructure development. As the dominant player in its market, Bank Mandiri plays a pivotal role in mobilizing long-term funding to meet the investment needs of its clients.”
