KIST (KAWASAN INDUSTRI SULAWESI TENGAH)
It is a National Strategic Project (PSN) with an area of 10,300Ha. The province of Central Sulawesi is passed through one of the main international seaborne trade routes connecting Asia with Australia (North - South line) which is through ALKI 2 which is passed by up to 10,000 ships every year. Central Sulawesi is located in the middle of Indonesia, which is the most strategic area because it is located between Eastern Indonesia which is the main supplier of raw materials and Western Indonesia which is the provider of supporting raw materials. The Central Sulawesi industrial area is an area with an international port, jetty and stockpile and is integrated with the Palu Special Economic Zone. As well as being included in the priority industrial area (RJPMNas), National Strategic Projects, and National Vital Objects. We present two (2) options to invest in Central Sulawesi industrial area:
A. Loan Facility
1. Lenders and sources of funds can be individuals or Private Fund Equity
2. The borrower will become a Special Project Company (SPC) based in Indonesia
3. Disbursement of financing will be sent directly to the offshore owned SPC which will be established by the Borrower
4. SPC fee is $200K and borne by the Borrower
5. Fund transfer will be made directly from the SPC owned Offshore to the Host Country SPC
6. No minimum or maximum project size required
7. Loans can be made up to 100% of the total cost of capital of the project
8. Single withdrawal
9. Loan term of 13 years including an initial grace period of 3 years (construction period) followed by a 10-year redemption period (designed to fit the project schedule)
10. Principal payments will be 10 equal annual installments, each 1/10 of the original principal
11. No other fees are required
12. Lenders will purchase credit risk insurance at their own expense
B. Equity Facility
1. Investors and sources of funds can be individuals or Private Fund Equity
2. The investor will be a Special Project Company (SPC) domiciled in Indonesia
3. Disbursement of financing will be sent directly to the offshore owned SPC which will be established by the Borrower
4. SPC fee is $200K and borne by the Borrower
5. Fund transfer will be made directly from the SPC owned Offshore to the Host Country SPC
6. No minimum or maximum project size required
7. Loans can be made up to 100% of the total cost of capital of the project
8. Single withdrawal
9. Subscription: 100% investment payout will be recorded as ___ % shareholding of SPC (Note: Allocation will be reviewed based on the specific project economy)
10. Independent interests of the developer (Note: Allocation will be reviewed based on the economics of a particular project)
11. Term: 12 years including a 2 year grace period. At the end of the 12 year period, Investors are entitled to remain in partnership or ask other capital owners to purchase project equity at a price calculated from the net value of the Company at the end of the transaction.
