PT Chandra Asri Pacific Tbk has appointed KKR & Co’s insurance unit, Global Atlantic, to finance its US$1 billion purchase of Esso-branded service stations in Singapore from Exxon Mobil Corp, according to people familiar with the matter.

Global Atlantic will provide a US$750 million unitranche facility at single-digit interest rates. Chandra Asri will cover the remaining US$250 million using its own equity, the sources said.

Global Atlantic outcompeted a rival consortium that was also seeking to fund the acquisition. Earlier, Chandra Asri had discussed a senior loan of up to US$600 million with banks and a mezzanine facility of about US$250 million from non-bank lenders, including Indonesia Investment Authority, Allianz Global Investors, and Ares Management Corp.

Last month, Chandra Asri signed a sale and purchase agreement to acquire the fuel stations through a special purpose vehicle under a wholly owned subsidiary. The deal remains subject to regulatory approval, with the company aiming to complete it by the end of 2025.

PHOTO: REUTERS/RAPHAEL SHATTER

This article was created with AI assistance.