Vale Secures Nearly Rp13 Trillion Loan to Develop This Project
PT Vale Indonesia Tbk (PT Vale) has secured a Sustainability-Linked Loan (SLL) facility worth US$750 million, equivalent to approximately Rp12.96 trillion (assuming an exchange rate of Rp17,286 per US dollar), with an additional greenshoe option of US$250 million or about Rp4.32 trillion.
Chief Financial Officer Rizky Andhika Putra explained that the funds will be used to support the development of the company’s strategic projects.
In 2026, approximately 50% of the funds will be allocated to the development of the IGP Pomalaa project, around 30% to the IGP Morowali project, and about 20% to the development of the IGP Sorowako Limonite.
Meanwhile, in 2027, the funding will focus on continuing these projects as well as fulfilling participating rights in joint venture projects.
Rizky explained that the loan facility is at the signing ceremony stage and funds have not yet been drawn. The scheme used is a revolving credit facility, allowing funds to be drawn gradually as needed up to the US$750 million ceiling.
“As of today, the funds have not been drawn, and this is a revolving credit facility, so it’s essentially a ceiling. We will draw it according to needs up to the stated facility amount of US$750 million,” he said after the signing of the US$750 million Sustainability-Linked Loan facility in Jakarta on Thursday (23/4/2026).
He also emphasised that in terms of funding structure, these projects are not entirely debt-financed as they still involve an equity portion. Nevertheless, future funding needs are expected to remain substantial.
At least, the company is open to additional funding through debt schemes in the coming years, potentially up to around US$1.5 billion to support expansion and project development.
“In the next few years, it’s likely we’ll have significant debt possibly up to US$1.5 billion,” he said.
As is known, the loan is supported by a syndicate of 14 international banks and was oversubscribed by 1.7 times, reflecting high confidence in the company’s business fundamentals and sustainability strategy.
This SLL facility is structured in reference to the Sustainability-Linked Financing Framework, which aligns with international practices in sustainability-based financing. The key performance indicators (KPIs) used include reductions in carbon emission intensity and increases in renewable energy usage.
This sustainability-based syndicated loan is an important milestone for PT Vale, marking the company’s first step into the syndicated loan market. This move aligns with the company’s increasingly strong growth trajectory, driven by the disciplined, measured expansion of strategic projects in Indonesia, underpinned by sustainability principles.