Indonesian energy and chemicals firm Chandra Asri Pacific has secured a US$250 million loan to support its purchase of Esso-branded service stations in Singapore from ExxonMobil (27/10).

The financing will partly fund the equity portion of the acquisition, according to sources familiar with the matter.

Strategic Financing from Bangkok Bank and Indonesia Investment Authority

The eight-year loan facility is provided jointly by Bangkok Bank and Indonesia’s sovereign wealth fund, the Indonesia Investment Authority. Sources requested anonymity due to the private nature of the discussions.

Chandra Asri, Bangkok Bank, and the Indonesia Investment Authority did not respond to requests for comment.

Trends in Asia-Pacific Mergers and Acquisitions

The financing reflects how private credit funds and traditional lenders are increasingly working side by side in Asia-Pacific M&A deals, a region with abundant bank liquidity.

Industry reports note that while the private credit market is expected to grow from US$59 billion in 2024 to US$92 billion in 2027, banks generally offer loans 200 to 400 basis points cheaper.

Previous KKR-backed Financing Supports Expansion Plans

In November, Chandra Asri also announced it had obtained a US$750 million loan from KKR via KKR Capital Markets.

This previous financing was supported by KKR’s private credit and insurance platforms.

PHOTO: EXXON MOBILE

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