Sunday, 16 June 2019 | 12:31 WIB

Bank Muamalat Joins Syndicated Financing of First Toll Road in Kalimantan

Bank Muamalat

JAKARTA, NNC – PT Bank Muamalat Indonesia Tbk (Bank Muamalat) participated in the syndicated financing of the Balikpapan-Samarinda toll road development project in East Kalimantan. It is the first toll road to be built on Kalimantan Island.

Bank Muamalat Chief Executive Officer Achmad K. Permana said the company's intermediation function was still running well in line with maintained liquidity. In this syndication, Bank Muamalat is committed to disburse funds of up to IDR300 billion.

"Through Bank Muamalat's participation in this syndication, we are optimistic that in the future it will be more expansionary. Of course, by prioritizing the principle of prudence and referring to the company's risk appetite in each segment," he said.

In total there are 14 financial institutions involved in this project, with 12 banks and financing institutions. The total syndicated loan disbursed is worth IDR6.98 trillion.

The financing of the 99.35 kilometer toll road is also carried out among others with Islamic financing schemes.

The project undertaken by PT Jasamarga Balikpapan Samarinda (JBS) requires an investment of around IDR9.9 trillion with a composition of 70 percent financing and 30 percent of the company's equity.

For information, Bank Muamalat Indonesia had partnered with the Association of Regional Development Banks (Asbanda) to syndicate financing for the construction of the Soreang-Pasir Koja (Soroja) toll road in West Java. The total ceiling of this project was IDR834 billion.