Jakarta. KB Bank announced Thursday that it had taken part in a syndicated loan worth $95.92 million for Petro Oxo Nusantara (PON).

PON is an export-oriented national petrochemical company with a strong market share in Asia and the Middle East. According to a press release, the funding aims to boost production capacity, strengthen the financing structure, and provide working capital.

In this syndicated scheme, KB Bank acts as joint original mandated lead arranger, underwriter, and bookrunner (JOMLAUB) and escrow agent.

PON is the pioneer and largest producer of 2-Ethyl Hexanol (2-EH), Normal-Butyl Alcohol (NBA), Iso-Butyl Alcohol (IBA), and CO₂ Liquid (LCO₂) products in Indonesia and Southeast Asia. These products are the main raw materials for various industrial sectors, such as plastics, paints, adhesives, and others, with the majority of sales destined for export markets, including China, Singapore, Malaysia, the United Arab Emirates, Australia, and India. 

PON is an entity within the Pertamina Group through Tuban Petrochemical Industries which plays a strategic role in supporting the development of the petrochemical industry in Indonesia.

“This aligns with the bank’s strategy to strengthen its financing portfolio in productive, export-oriented, and globally competitive sectors,” KB Bank President Director Kunardy Darma Lie said.

The financing also reflects KB Bank’s commitment to the petrochemical industry, which contributes significantly to the industrial supply chain and export performance.

“We are optimistic that this collaboration will drive sustainable business growth for both the company and the national economy,” Kunardy Darma Lie said.

KB Bank’s participation also opens up opportunities for synergy and the development of other banking services, including escrow management, trade finance, and treasury and foreign exchange services. 

“We believe this strategic partnership can create a positive business climate for the petrochemical industry and provide greater benefits to the country’s foreign exchange reserves and national development,” PON president director Jaya Martapa said.

KB Bank plans to continue to expand its role in syndicated financing and strategic projects across various sectors for an inclusive and sustainable economic growth.