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BANKING-JAKARTA. Entering 2024, several banks are optimistic that syndicated loans will record a positive trend.
The distribution of syndicated loans in Indonesia from January to December 26, 2023, reached US$ 28,588.15 million, or equivalent to IDR 442.54 trillion (assuming an exchange rate of IDR 15,480).
Based on Bloomberg League Table Reports, syndicated loan agreements from the mandated lead arranger (MLA) side have reached 69 projects, involving 64 banks as MLA or the party that arranges in the formation of syndication.
PT Bank Mandiri Tbk (BMRI) still holds as the champion in its participation in syndicated financing in 2023. This bank with a gold ribbon logo has participated and simultaneously became the MLA in 38 transactions with a loan value of US$4,390.77 million according to Bloomberg League Table Reports data as of December 26, 2023.
Bank Mandiri's Corporate Banking Director Susana Indah Kris Indriati said that with a market share of 15.36%, they were able to maintain the first-rank position.
Indah said that although the overall volume of syndicated loans in Indonesia in 2023 has decreased by 14.54% year to date (YTD) compared to the position as of December 31, 2022, she said that Bank Mandiri's market share in Indonesian syndicated loans still grew by 7.3% compared to the position as of December 31, 2022.
"The decrease in Indonesia occurred because the volume of syndicated loans in 2022 was still influenced by the significant growth of the economy after the slowdown during the Covid-19 pandemic. However, Bank Mandiri can still grow, this reflects our dedication to providing reliable and leading financial support in Indonesia to continue to drive national economic growth," Indah told Kontan recently.
The distribution of syndicated loans led by Bank Mandiri in 2023 includes the infrastructure, natural resources, consumer goods, and metal processing sectors. In addition, during 2023 Bank Mandiri also saw a growth trend for financing in the renewable energy sector (EBT).
Meanwhile, entering 2024, Indah said they see syndicated financing continue to develop in sustainability-based projects, such as green loans and sustainability-linked loans, or financing in EBT projects.
"In addition, the plan to build the Nusantara Capital City (IKN) we estimate will also drive the growth of syndicated financing volume in the coming year," she said.
Although not mentioning in detail the pipeline and revenue targets from syndicated loans, Indah said Bank Mandiri is committed to supporting the growth of the Indonesian economy through prudent financing to various sectors, especially sectors that are directly the main catalysts for economic growth.
"Bank Mandiri hopes to continue to maintain its position as a bank with the largest market share in the MLA League Table on Bloomberg in 2024, and fee-based income from syndication in 2024 is also expected to grow," she said.
Syndicated loans from PT Bank Rakyat Indonesia Tbk (BBRI) throughout 2023 also showed a very positive trend, where the company has participated and simultaneously became the MLA in 24 transactions with a loan value of US$2,820.07 million and a market share of 9.86% according to Bloomberg League Table Reports data as of December 26, 2023.
With that market share, BRI ranks third as an MLA, below PT Bank Negara Indonesia Tbk (BBNI) which is in second position as a bank that participates and simultaneously becomes an MLA in 26 transactions with a loan value of US$3,207 million and market share of 11.22%.
BRI's Corporate Secretary Agustya Hendy Bernadi said BRI's syndicated loans grew by 24.2% annually (YoY), where the majority of financing was channeled to the Energy, Agribusiness, Manufacturing Industry, Mining, and Oil and gas sectors.
"BRI sees these sectors will also remain prospective in 2024," he told Kontan. Hendy also mentioned the pipeline currently being handled by BRI to be processed next year includes about 11 Syndication Projects with a participation value reaching around IDR 20 trillion.
"BRI's Fee-Based Income target from syndication for 2024 is projected to grow by 25% compared to 2023 along with economic recovery and support for strategic projects," he added.
Meanwhile, PT Bank Central Asia Tbk (BBCA) also projects that syndicated loans will continue to grow positively in the future. Based on Bloomberg League Table Reports data as of December 26, 2023, BCA ranks fourth and has participated, as well as becoming an MLA in 23 syndication projects with a loan value of US$2,425.67 million and a market share of 8.43%.
"BCA disburses to national strategic projects such as toll road infrastructure, construction, and electricity," said Hera F Haryn, EVP Secretariat and Corporate Communication BCA recently.
