DBS Bank will provide a US$60 million structured trade facility to Chandra Asri Petrochemical, Indonesia’s largest integrated petrochemical producer, to support the company’s efforts to expand export growth of petrochemical products from Indonesia.
Chandra Asri operates the country’s only naphtha cracker that produces olefins, pygas, mixed C4 and polyolefins. In 2020, it brought on stream Indonesia’s pioneering butene 1 and methyl tert-butyl ether plants, notwithstanding the Covid-19 pandemic. This is in line with the company’s master plan to vertically integrate, support domestic consumption and grow its export sales of monomers and polymers from Indonesia to bolster the country’s balance of payments.
“This uniquely structured trade finance solution gives Chandra Asri the ability to obtain, scale and diversify access to competitive financing,” says Tan Su Shan, group head of institutional banking at DBS. “We look forward to helping more corporates from Indonesia expand and grow internationally."
While trade facilities are usually straightforward, DBS’ structure for Chandra Asri integrates a combination of trade products to deliver a customised solution. Since 2005, the bank has been providing Chandra Asri with a variety of services in areas like digital banking, cash management, trade facilities, treasury, debt capital markets, and financing.