JAKARTA – PT Jababeka Tbk (KIJA), a prominent property developer, has successfully secured a substantial new credit facility valued at US$185.85 million from PT Bank Mandiri Tbk (BMRI), one of Indonesia’s leading banks. This strategic financial move is set to significantly bolster Jababeka’s long-term financial stability and operational flexibility.
According to an official information disclosure, KIJA finalized the new long-term loan agreement with Bank Mandiri on May 13, 2026. This facility boasts a generous 15-year tenor and is denominated in Indonesian Rupiah, carrying a floating interest rate of 7% per annum.
The proceeds from this facility are primarily earmarked for the proactive refinancing of the company’s existing Senior Notes, which are valued at US$185.85 million and set to mature in December 2027. Additionally, a further term loan of Rp70 billion has been secured to support KIJA’s general corporate requirements, ensuring seamless business operations and future growth initiatives.
Budianto Liman, Deputy President Director of KIJA, emphasized that this transaction is an integral part of the company’s proactive liability management strategy. He articulated the expectation that this action will fortify Jababeka’s long-term financial profile by extending debt maturities and significantly enhancing liquidity visibility. This strategic approach aims to create a more resilient financial structure for the company.
Furthermore, the decision to utilize a loan facility denominated in Indonesian Rupiah is a deliberate effort to align KIJA’s financing structure with its reporting currency. Liman explained that this alignment is crucial for mitigating profit volatility caused by fluctuations in foreign exchange rates, particularly against the US dollar. This measure underscores KIJA’s commitment to prudent financial management and risk reduction.
In connection with this financing facility, KIJA has provided security in the form of certain assets belonging to the company and its subsidiaries. The total value of these pledged assets meets a robust coverage ratio of 120% of the loan value. Notably, the provision of this collateral does not constitute a material transaction as defined by Financial Services Authority (OJK) Regulation No. 17/POJK.04/2020 concerning Material Transactions and Changes in Business Activities, thus obviating the need for General Meeting of Shareholders’ approval.
Liman conveyed his profound appreciation for the unwavering support and trust demonstrated by Bank Mandiri through this long-term financing facility. He highlighted that this transaction not only significantly extends KIJA’s debt maturity profile but also substantially strengthens its liquidity position and enhances overall financial flexibility. Amidst increasing volatility in the international debt markets, KIJA confidently asserts that this financing facility represents a precisely timed and prudent funding solution.
The robust support from the domestic banking sector, Liman added, is a clear reflection of the sustained confidence in KIJA’s strategic direction, operational performance, and robust long-term fundamentals. This endorsement from a key local financial institution underscores the developer’s strong market standing.
Looking ahead, KIJA remains steadfast in its commitment to maintaining a diversified long-term funding strategy. The company continues to view both banking instruments and the debt capital market as vital sources of funding, ensuring a balanced and resilient capital structure for future endeavors.
This landmark transaction offers at least five key benefits to Jababeka:
- Extension of Debt Maturity: The company’s average debt maturity profile is significantly prolonged through the new 15-year tenor.
- Proactive Refinancing: Senior Notes are being refinanced proactively, well in advance of their December 2027 maturity date.
- Enhanced Financial Position: The company’s liquidity position and financial flexibility are substantially strengthened.
- Reduced Currency Risk: Alignment of the financing structure with KIJA’s reporting currency effectively mitigates foreign exchange rate volatility risk.
- Mitigated Refinancing Risk: The risk of refinancing is considerably reduced amidst prevailing high market volatility.
Liman also expressed KIJA’s gratitude for the long-standing support provided by bond and debt investors over the years, reaffirming the company’s commitment to maintaining active communication with the broader financing community. In the future, the company will remain sharply focused on preserving a prudent capital structure, sustaining robust liquidity, and continuously optimizing its funding profile for enduring long-term success.
Summary
PT Jababeka Tbk (KIJA) has secured a US$185.85 million long-term credit facility from PT Bank Mandiri Tbk, finalized on May 13, 2026. This 15-year, Rupiah-denominated loan, carrying a 7% floating interest rate, is primarily intended to proactively refinance KIJA’s Senior Notes maturing in December 2027. An additional Rp70 billion term loan will support the company’s general corporate requirements.
This strategic financial move aims to fortify Jababeka’s long-term financial profile by extending debt maturities, enhancing liquidity, and mitigating foreign exchange rate volatility. The facility, secured by company assets with a 120% coverage ratio, is considered a prudent funding solution that reduces refinancing risk amid market volatility. It also reflects sustained confidence from the domestic banking sector in KIJA’s strategic direction and fundamentals.