Jakarta. Chandra Asri Group announced Monday that it had officially exercised the greenshoe option under the $600 million equivalent sustainability-linked syndicated term loan facilities signed in May 2024.

Chandra Asri Group sought to upsize the value to $800 million equivalent. This also followed a positive response from the bank market and oversubscription to the sustainability-linked syndicated term loan facilities. A number of banks across Indonesia, Singapore, and Thailand provided these facilities.

This agreement marks greater and solid support from the banking industry, reaffirming Chandra Asri Group’s commitment to responsible business practices and environment stewardship which are expected to boost the company’s overall performance.

Chandra Asri Group partnered with Oversea-Chinese Banking Corporation Limited (OCBC) as advisory bank and Mandated Lead Arranger, Underwriter, and Bookrunner (MLAUB) for the $800 million equivalent syndicated loan facilities. They are also supported by other financial institutions, namely Bank Central Asia, Bank Danamon Indonesia, KasikornBank, Bank Permata, HSBC Indonesia, Mandiri, and ICBC Indonesia. OCBC also acted as the sole sustainability coordinator in the facilities.  

The loan is designated to foster and support environmentally and socially sustainable economic projects to support the company’s growth, which will reinforce Chandra Asri Group's leadership in the chemical and infrastructure sectors. Through the integration of financial strategies with sustainability objectives, Chandra Asri Group, as a committed growth partner, is confident in spearheading sustainable business practices.

Chandra Asri Group is pleased to collaborate with leading financial institutions across the region, and we look forward to leveraging these funds to foster sustainable economic projects. We also thank OCBC for their exceptional role as the advisory bank and MLAUB. Their expertise and support have been invaluable in helping us achieve this milestone and enabling Chandra Asri Group to advance responsibly,” Andre Khor, the chief financial officer at Chandra Asri Group was quoted as saying in a recent press statement. 

Tan Teck Long, Head of Global Wholesale Banking of OCBC said that the company was pleased to support Chandra Asri Group. 

“This will enable the group to drive its growth in an environmentally sustainable manner. This partnership exemplifies OCBC’s commitment to leveraging our expertise and innovative financial solutions to help our clients achieve their ambitions and support them in their transition to a low-carbon world,” Tan Teck Long said.