DBS Bank announced that it has provided a USD60 million structured trade facility to PT Chandra Asri Petrochemical Tbk (Chandra Asri), to support the company’s efforts to expand export growth of petrochemical products from Indonesia.
Chandra Asri is the largest integrated petrochemical producer in Indonesia and operates the country’s only Naphtha cracker that produces Olefins (Ethylene, Propylene), Pygas and Mixed C4, as well as Polyolefins (Polyethylene and Polypropylene). Recently, Chandra Asri has brought on stream Indonesia’s pioneering Butene 1 and Methyl Tert-Butyl Ether (MTBE) plants in 2020, 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.
DBS has been providing Chandra Asri, its corporate customer since 2005, with a variety of banking services in areas such as: digital banking, cash management, trade facilities, treasury, debt capital markets, and financing, to meet the wide-ranging business needs of Chandra Asri.
Tan Su Shan, Group Head of Institutional Banking, DBS, said, “We are pleased to be able to continue our long partnership with Chandra Asri, the leading petrochemical company in Indonesia. This uniquely structured trade finance solution gives Chandra Asri the ability to obtain, scale and diversify access to competitive financing. We look forward to continue working with the company and to helping more corporates from Indonesia expand and grow internationally.”
While trade facilities are usually straightforward, DBS’ structure for Chandra Asri uniquely integrates a combination of trade products to deliver a customised solution. It meets the trading needs of the company today and provides the flexibility to Chandra Asri to upgrade the facility quickly as their export growth expands in the future.
“DBS Bank’s excellent track record in understanding client needs and executing complex structures, combined with their focus on long-term partnerships, has been and continues to be a key element of their strength. We are pleased to be continuing our strong relationship with DBS Bank via this innovative and elegant trade finance facility, that supports our strategic plans for export growth,” said Erwin Ciputra, Chief Executive Officer, Chandra Asri.