logo
Danantara Indonesia to draw down $3bln from $10bln credit line, sources say

Danantara Indonesia to draw down $3bln from $10bln credit line, sources say

Zawya11-07-2025
JAKARTA - Indonesian sovereign wealth fund Danantara is likely to draw down $3 billion initially from a $10 billion credit line and use it for investments including a chemical plant and co-financings with Qatar's and China's wealth funds, sources said.
The credit line, which a source said has been secured from five foreign banks, would become the biggest such loan disbursed in Southeast Asia by private sector banks when fully drawn down. The facility also represents the first private sector funding for Danantara, which was set up in February and given control of more than $900 billion worth of assets.
Daya Anagata Nusantara - better known as Danantara - is part of an ambitious plan of President Prabowo Subianto who swept to power last year by promising to grow the $1.5 trillion economy at a rate of 8% compared to the current 5%.
Danantara did not respond to a request for comment. The two sources, who had direct knowledge of the matter, asked to remain anonymous because they were not authorised to speak to the media.
One of the projects the initial drawn down sum will be used for is a roughly $800 million chlor-alkali and ethylene dichloride plant of petrochemical firm Chandra Asri Pacific , one of the sources said.
In June, Danantara and the Indonesia Investment Authority, the country's first sovereign fund, said they might become new investors in the project, which will produce material used in the water treatment, soap, alumina, and nickel industries.
Earlier this year, Danantara also signed agreements separately with the Qatar Investment Authority and China Investment Corporation on potential co-investments. It was not immediately clear which projects in these partnerships would be financed by the initial drawn down amount.
DBS, HSBC, Natixis SA, Standard Chartered and United Overseas Bank were appointed this week as the lead arrangers for the $10 billion facility, one of the sources said, adding they were among 11 foreign banks that submitted proposals.
DBS, Natixis and HSBC declined to comment, while the other two banks did not immediately respond to requests for comment.
The $10 billion credit facility will be available for the next three years, the source said, adding that Danantara had no plans to issue bonds at the moment.
The facility carries interest rates on par with Indonesian sovereign bond yields, and each bank committed to lend $1 billion without security and government guarantees, the source said, adding: "Danantara is a sovereign." As a comparison, Indonesia sold in January $900 million worth of five-year U.S. dollar-denominated bonds with a 5.30% yield.
Loan proposals from some other foreign banks were considered but they could not agree on terms as those lenders had asked for a government guarantee, the source said. As lead arrangers, they will typically bring in other banks to fund the remainder of the total facility.
(Reporting by Stefanno Sulaiman in Jakarta and Yantoultra Ngui in Singapore; Editing by Gibran Naiyyar Peshimam and Muralikumar Anantharaman)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Abu Dhabi Real Estate Centre records AED51.7bln+ in real estate transactions in H1 2025
Abu Dhabi Real Estate Centre records AED51.7bln+ in real estate transactions in H1 2025

Zawya

time20 minutes ago

  • Zawya

Abu Dhabi Real Estate Centre records AED51.7bln+ in real estate transactions in H1 2025

Abu Dhabi – The Abu Dhabi real estate sector delivered outstanding performance in the first half of 2025, with the total real estate transaction value increasing by 39 per cent compared to the same period in 2024. The total value reached AED51.72 billion, up from AED37.2 billion last year, according to data released by the Abu Dhabi Real Estate Centre (ADREC). The number of property transactions increased by 12 per cent, reaching 14,167 deals, reflecting accelerated market activity underpinned by notable increases in sales, purchases, and mortgage transactions. Sales and purchases transactions grew 32 per cent in value, reaching AED32.69 billion through 7,964 transactions, while mortgage transactions recorded a significant 52 per cent increase in value, amounting to AED19.03 billion through 6,204 deals. The first half of the year witnessed increased interest from international investors. Foreign Direct Investment (FDI) transactions reached 890, a 3.3 per cent increase in total value, amounting to AED3.38 billion. The number of nationalities who invested grew to 85, up 10 per cent compared to the same period last year, underscoring the growing global confidence in Abu Dhabi's real estate sector. The market attracted strong interest from investors from major and emerging economies including Russia, China, the United Kingdom, France, Kazakhstan and the United States, which reflects Abu Dhabi's position as a global investment hub that combines economic stability with high-quality opportunities. In terms of transaction values by area, Saadiyat Island maintained its lead at more than AED9.1 billion, followed by Yas Island at AED5.86 billion, and Al Bahia at AED3.98 billion. Other locations that recorded strong transactions included Mohammed Bin Zayed City, Al Reem Island, Al Riyadh City, and Khalifa City, highlighting the broad geographic spread of real estate activity across the emirate. Eng Rashed Al Omaira, Acting Director General of ADREC, said: 'The first-half performance reflects the growing confidence in Abu Dhabi's real estate market, from both global and national investors, reflected in the sustained growth in transaction values and continued increase in foreign investment. 'The recent launch of high-quality projects has further energised the market and opened doors to attractive investment opportunities, reinforcing Abu Dhabi's attractiveness as a leading destination for sustainable real estate investment. Additionally, the initiatives ADREC recently launched and the facilitations it offered, including automation of a large number of processes and services, had a pivotal role in reaching this achievement, through streamlining the investor's journey, accelerating transactions and enhancing transparency.' ADREC continues to advance its legislative framework and enhance the user experience in line with the emirate's economic ambitions, strengthening its regional and global competitiveness. About The Abu Dhabi Real Estate Centre (ADREC) The Department of Municipalities and Transport (DMT) officially launched the Abu Dhabi Real Estate Centre (ADREC) in November 2023 to accelerate growth across the real estate ecosystem in the emirate. ADREC unifies and strengthens the real estate sector in Abu Dhabi through a comprehensive regulatory framework to further enhance the efficiency of real estate and strengthen oversight, as well as increase transparency and support for residents, investors, real estate companies and professionals. ADREC's strategy is centred around four key pillars: Real Estate Strategy, Real Estate Promotion, Real Estate Regulation, and Real Estate Transactions Management. For media inquiries, please contact: Heba Al-Haj | ADREC - Real Estate Promotion +971 50 933 6130

FDI in Oman's industrial sector grows by 27.5%
FDI in Oman's industrial sector grows by 27.5%

Zawya

timean hour ago

  • Zawya

FDI in Oman's industrial sector grows by 27.5%

Muscat: The industrial sector in Oman witnessed significant growth in foreign direct investments during the first quarter of 2025, with a growth rate of 27.5 percent compared to the same period last year, bringing the total value to OMR 2.749 billion. The industrial sector topped the non-oil sectors in terms of targeted investment volume, with investments concentrated in promising sectors, most notably: renewable energy technology manufacturing, as part of the Sultanate of Oman's drive towards a green economy. The industrial sector in the Sultanate of Oman continues to grow as reflected in the effectiveness of government policies aimed at enhancing economic diversification and increasing its contribution to the gross domestic product (GDP), within the framework of Oman Vision 2040, which has placed industry among its priorities. The industrial sector witnessed positive and tangible developments in several activities during the first half of 2025. Expansion in productivity and increased regional and international demand contributed to the growth of a number of vital industrial sectors. Dr. Saleh bin Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, said that the positive results achieved by the industrial sector are a direct reflection of the integration of national policies and incentive plans aimed at building a flexible and competitive production base through the implementation of the programmes and initiatives of the Industrial Strategy 2040, enabling quality investments, improving the quality of services in industrial and economic cities, and facilitating procedures for investors. He added that the industrial sector is a driver of economic growth, a lever for innovation, a recruiter of national talent, a promoter of food and medicine security, and an expander of local value chains in the national economy. For his part, Eng. Khalid bin Salim Al Qassabi, Director General of Industry at the Ministry of Commerce, Industry and Investment Promotion, explained that industrial performance during the first half of this year clearly demonstrates the ability of Omani factories to achieve advanced growth rates and expand production and operations, despite regional and international challenges related to market and supply chain fluctuations. He stated that this positive performance was a direct result of the integrated efforts between the public and private sectors, benefiting from support and incentive packages, and reducing service costs. This was reflected in the increased rates of localising projects within industrial cities and free zones, and achieving advanced Omanisation rates in a number of industrial activities. He stressed that the Ministry of Commerce, Industry and Investment Promotion continues to support initiatives that enhance local added value and expand the national production base, in line with the objectives of the industrial strategy and "Oman Vision 2040" aimed at building a diversified and sustainable economy. For his part, Eng. Jassim bin Saif Al Jadidi, Technical Director of the Office of the Undersecretary for Commerce and Industry, emphasised that the industrial sector enjoys investor confidence, thanks to the continuous improvement of the business environment, the stimulating legislative structure, and the promising opportunities it offers in a number of industrial sectors through the development of new incentive policies, including: providing industrial financing, developing logistics services, localising advanced technologies, and stimulating international partnerships. The minerals sector is witnessing an expansion in production and export chains. The manufacturing sector witnessed a significant improvement in its performance during the first half of this year, driven by strong growth in the petrochemical and electrical sectors. In the building materials and construction sector, the iron and aluminum industries continued to achieve positive results and steady growth, while cement companies began to show signs of improved performance and reduced losses. Tile and ceramic factories showed signs of recovery, while glass companies still face operational challenges that the Ministry is working to address as part of its plans to develop the manufacturing industries. In the food industries sector, milling, soft drinks, and refreshment companies led the recovery scene, achieving significant profits thanks to improved operational efficiency and an expanded consumer base locally and regionally. In terms of foreign trade, Omani non-oil exports grew by 7.2 percent during the period from January to May 2025, reaching OMR 2.7 billion, reflecting the strength of Omani products in foreign markets. The United Arab Emirates topped the list of countries importing Omani products, with OMR485 million, an increase of 22.9 percent, followed by the Kingdom of Saudi Arabia with OMR451 million, an increase of 34.9 percent, and then the Republic of India with OMR280 million, an increase of 38.9 percent. These results reflect the diversity of the trading partner base, underscoring the importance of activating trade promotion tools and enhancing the industrial sector's readiness to enter new markets, particularly in Asia and Africa, which represent promising markets for Omani products. © Muscat Media Group Provided by SyndiGate Media Inc. (

Abu Dhabi-listed Investcorp Capital appoints news CEO
Abu Dhabi-listed Investcorp Capital appoints news CEO

Zawya

timean hour ago

  • Zawya

Abu Dhabi-listed Investcorp Capital appoints news CEO

Alternative investment firm Investcorp Capital has appointed Sana Khater as new CEO, effective September 1. Khater has worked 35 years in C-Suite positions across listed and private companies, including Aldar, where she served as the Executive Director of Finance, prior to which she was with the Abu Dhabi-listed investment management company Waha Capital for 10 years. She left Waha Capital as the CFO. Khater has also worked in Kuwait, with NBK Capital, and the National Bank of Kuwait as CFO. Khater succeeds Mohamed Aamer at the Abu Dhabi-listed Investcorp Capital. Investcorp Capital, founded by Investcorp Group, has approximately $55 billion in AUM, according to its website. (Writing by Bindu Rai, editing by Seban Scaria)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store