Republic of Indonesia / NEXI Provides Loan Insurance to Support Japan’s Exports Related to Polyethylene Plant Construction Project

Nippon Export and Investment Insurance (NEXI：Chairman and CEO: Kazuhiko Bando) has decided to provide insurance for a loan extended to a polyethylene plant construction project by PT Chandra Asri Petrochemical Tbk (hereinafter “CAP”), the largest petrochemical company in the Republic of Indonesia (“Indonesia”).

The aim of the project is to build a new polyethylene plant with capacity of 400 KTA in Cilegon, West Java, at CAP’s existing petrochemical complex. Post completion, it will bring CAP’s total Polyethylene production capacity to 736 KTA. Toyo Engineering Cooperation (“TOYO”) and its group subsidiaries have been awarded a contract for the construction of the plant.

NEXI will cover the co-financing portion of USD 68.8 million provided by BNP Paribas Bank, which is a part of the total loan amount of USD 172 million financed by the Japan Bank for International Cooperation (JBIC) and BNP Paribas Bank, Tokyo Branch, for the purpose of purchasing Japan’s export products for the project.

With Indonesia’s ongoing economic growth, demand for petrochemical products is expected to increase. To serve this rising demand, the country’s biggest petrochemical producer, CAP has started to construct the new facility and expand its existing production capacity. TOYO has received several orders from CAP in the past, for an ethylene production facility in 1990s, and a butadiene production facility and a project to expand ethylene production capacity in the late 2000s. Further cooperation between the two companies is therefore expected in the future.

As Japan’s policy-based financial institution, NEXI will continue to actively support Japanese companies’ exporting business.

Contact: Natural Resources Group Ⅱ, Structured and Trade Finance Insurance Dept.
Tel: +81-(0)3-3512-7744