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China's ICBC bank offers $500 million in loan to Indonesian Eximbank

Staff writer |
The Industrial and Commercial Bank of China (ICBC) inked a $500 million loan deal with Indonesia's state-run Eximbank to help boost the country's foreign trade and infrastructure.

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The five-year loan was jointly provided by ICBC Indonesia and ICBC Asia, subsidiaries of the ICBC Limited.

The deal is part of a $20 billion loan facility signed in Beijing earlier this year, which is aimed at helping spur the Indonesian economy.

The loans provided by the ICBC would be channeled to Indonesia' s state-run firms.

"Through the signing of the loan deal, ICBC Indonesia reaffirms its commitment to become the 'financial bridge' between Indonesia and China," President Director of ICBC Indonesia Shen Xiaoqi said.

The ICBC acted as the facility provider, while ICBC Asia was the lead arranger of the club deal loan, Shen said.

Complying with Indonesian leaders' request, ICBC Indonesia would focus its operation on helping finance infrastructure projects and cooperation with Indonesia's state-run firms, he said.

The Asian Development Bank (ADB) trimmed its forecast for Indonesia's economic growth this year to 4.9 percent from the previous estimate of 5.5 percent, the lender said in a statement on Tuesday.

The bank also cut its projection of the country's GDP growth next year to 5.4 percent from the previous estimate of 6 percent.

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