Maybank Indonesia and ANTAM Forms Strategic Partnership Through US$100 Million Sharia Financing Facility Agreement
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Jakarta, 18 December 2015 - PT Bank Maybank Indonesia Tbk (Maybank Indonesia) and PT ANTAM (Persero) Tbk (ASX: ATM; IDX: ANTM; ANTAM) are pleased to announce that they have formed strategic partnership through US$100 million sharia financing facility. The launch of the strategic partnership between ANTAM’s President Director Tedy Badrujaman and Maybank Indonesia’s President Director Taswin Zakaria was held today, Friday, December 18, 2015, at ANTAM’s Head Office in Jakarta.
ANTAM will use the facility to support the funding of its Pomalaa Ferronickel Plant Expansion Project (P3FP), located in Pomalaa, Southeast Sulawesi as well as to support financing of general capital expenditure and corporate purposes. The expansion of the Pomalaa ferronickel plant aims to increase ANTAM’s current annual ferronickel production capacity from 18,000-20,000 tonnes of nickel contained in ferronickel (TNi) to 27,000-30,000 TNi. The project also aims to will increase the efficiency of the ferronickel smelter and includes the development of a 2x30MW coal fired power plant. The financing facility is based on Musyarakah Sharia principle and has a 10 year term with payment of profit-loss sharing every 3 months based on agreed arrangements. The facility financing received from Maybank Indonesia completes sufficiently covers the requirements of funding for ANTAM’s P3FP. As of end of November 2015, the EPC progress of P3FP has reached 98.36%.
" The strategic partnership with ANTAM is in line with Maybank Indonesia’s strategy to focus on supporting strategic SOE’s and top tier Indonesian corporate clients. Further, the Sharia-based facility is also in line with our Sharia First strategy, by providing clients with Sharia facility options for business expansion, notably for ANTAM as one of the leading mining and metals SOE,” said Taswin Zakaria. He also adds, “Our support is in line with the mission of Maybank Indonesia and Maybank Group, humanising financial services, by being part of to always be in the heart of the community and providing the best service and solution to our business partner. "
ANTAM’s President Director, Tedy Badrujaman, said, " The facility from Maybank Indonesia with a very competitive term and is based on Sharia principle reflects ANTAM’s solid position in the banking industry. The Sharia facility also serves as alternative funding source for ANTAM outside of the existing facilities. "
The strategic partnership between Maybank Indonesia and ANTAM through the Sharia investment facility reflects the banking industry’s trust toward ANTAM amidst commodity prices volatility. As well, the partnership signifies the positive support of the banking industry to ANTAM amidst the challenges faced by the mining industry.