Semen Baturaja Receives Sustainable Syndicated Loans Worth IDR 901.425 Billion from Four Banks

JAKARTA – PT Semen Baturaja Tbk (SMBR), a subsidiary of SIG, signed a Syndicated Sustainability Linked Loan (“SLL”) Credit Agreement of IDR 901.425 billion with four banks, including PT Bank Negara Indonesia (Persero) Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank CIMB Niaga Tbk, and PT Bank HSBC Indonesia.

The signing was carried out in the Plenary Room of the SIG Head Office, South Quarter, Jakarta, on Tuesday (28/3/2023) by the Main Director of Semen Baturaja, Daconi Khotob; Head of Syndication & Corporate Solution Division of Bank BNI, Yogi Bima Sakti (as BNI Facility Agent); Head of Corporate Banking 3 Division of Bank BNI, Dipo Nugroho; SVP Corporate Banking 2 Group Bank Mandiri, Budi Purwanto; Deputy Head of Wholesale Banking PT Bank HSBC Indonesia, Dionisia Andrea Lachman; as well as SVP Corporate Banking of Bank CIMB Niaga, Putu Arimbawa and VP-Structured Finance, Mergers & Acquisitions of Bank CIMB Niaga, Rifan Arista.

The SLL Syndicated Credit Agreement for Semen Baturaja is in line with the Sustainability Strategy that has been set by SIG as a form of commitment to sustainability through the implementation of ESG (Environmental, Social, Governance) principles, and at the same time is part of a series of Sustainability Framework which was released by SIG on October 14, 2022 Then.

SIG’s Director of Finance and Risk Management, Andriano Hosny Panangian said, the SLL program is a manifestation of SIG’s seriousness in implementing ESG aspects which are part of the Company’s efforts to reduce carbon emissions through sustainable operating standards that have a positive impact on the environment and society, and are strong from a governance standpoint. (governance) and compliance (compliance).

“SIG continues to encourage reprofiling of the capital structure within the SIG Group which supports sustainability in order to create environmental protection and sustainable social responsibility. This is very important, especially related to the going concern and resilience of the Company in the future,” said Andriano Hosny Panangian.

Meanwhile, the Main Director of Semen Baturaja, Daconi Khotob welcomed the SLL program initiated by SIG as Holding. This SLL program further strengthens the company’s commitment to sustainability through the implementation of ESG principles, and provides an important basis for carrying out business activities that are more environmentally sound, in line with Semen Baturaja’s vision to become the leading Green Cement-Based Building Material Company in Indonesia.

“This SLL Syndicated Loan will provide many benefits for Semen Baturaja, including lower interest rates than conventional loans, more attractive term sheets, the flexibility to make accelerated repayments, and broaden the scope of investors considering that Semen Baturaja is a public company,” said Daconi Khotob.

Head of Corporate Banking 3 Division Bank BNI, Dipo Nugroho said, BNI as the agent and SLL coordinator really supports SIG in efforts to maintain environmental sustainability and have a positive impact on social life. It is hoped that GIS can become a role model for other companies to pay attention to environmental aspects in their business activities.
“SLL is a very positive program and BNI is committed to supporting policies related to sustainability. This is a very important milestone for BNI and we really hope that this collaboration will continue for the success of the SIG business going forward,” said Dipo Nugroho.

Previously, on 19 December 2022, SIG and its subsidiary PT Solusi Bangun Indonesia Tbk (SBI) had also signed an SLL Syndicated Credit Agreement with 12 (twelve) banks as creditors. In the SLL Syndicated Credit Agreement, SIG will obtain credit of Rp. 4.15 trillion, while SBI will obtain credit of Rp. 2.74 trillion.

SLL is an existing syndicated bank loan refinancing scheme, without adding to the debt burden. Apart from being SIG’s commitment to decarbonization initiatives, SLL also provides the benefit of reducing interest margins compared to existing syndicated bank loans with better terms. More than that, SLL also has a positive impact on increasing ESG ratings, so that it can return SIG to the IDX ESG Leader Index and increase global and national investor confidence.