Chandra Asri Secures $750M Credit Facility for Strategic Acquisition

Strategic Expansion in Energy Sector

PT Chandra Asri Pacific Tbk (TPIA), part of Chandra Asri Group, has successfully obtained a $750 million (approximately Rp 12.55 trillion) credit facility from global investment firm KKR. This significant financial backing is specifically designed to support the company's strategic acquisition of ExxonMobil's Esso-branded retail fuel stations in Singapore. The deal represents a crucial step in Chandra Asri's expansion strategy within the regional energy market.

Financial and Business Implications

The credit facility, arranged by KKR Capital Markets through their private credit and insurance platform, underscores the confidence of international investors in Chandra Asri Group's growth trajectory and its developing downstream energy platform. Chandra Asri Group, which operates across various industries including manufacturing, chemical trading, petrochemicals, and synthetic rubber, is leveraging this acquisition to strengthen its presence in the energy retail sector.

Key Quotes and Insights

Chief Financial Officer (CFO) of Chandra Asri Group, Andre Khor, expressed satisfaction with the strategic partnership with KKR, stating, "We're pleased to partner strategically with KKR in supporting our acquisition of ExxonMobil's Esso-branded retail network in Singapore. This collaboration with a leading global investment firm reflects strong confidence in Chandra Asri Group's transformation journey and the quality of our growing downstream energy platform."

Market Position and Future Prospects

This acquisition and the associated credit facility demonstrate Chandra Asri Group's commitment to expanding its energy business while maintaining strong financial backing from reputable international investors. The successful execution of this deal is expected to bolster the company's market position in Singapore and potentially create further growth opportunities in the regional energy sector.