CIMB Niaga Leads Historic Sharia Syndication for Batam Power Project

Groundbreaking Sustainable Finance Deal

CIMB Niaga (BNGA) has successfully led a Rp3.3 trillion sharia syndication facility for PT PLN Batam's 120-megawatt Gas and Steam Power Plant (PLTGU) project in Batam. This landmark transaction, conducted in collaboration with PT Bank Maybank Indonesia Tbk and PT Sarana Multi Infrastruktur, marks Indonesia's first sustainable sharia syndication using the Ijarah Muntahiyah Bittamlik (IMBT) scheme.

Key Features of the Financing

The financing facility was structured using the IMBT contract, a leasing arrangement that ends with the transfer of ownership. This innovative financial structure allows strategic projects to be executed without directly increasing long-term debt burdens, while maintaining capital efficiency and corporate cash flow. The transaction demonstrates how Islamic finance principles can be effectively utilized for major infrastructure projects.

CIMB Niaga's Role and Sustainability Commitment

In this transaction, CIMB Niaga acted as the Joint Mandated Lead Arranger, Bookrunner, and Lead Sustainability Coordinator. This role underscores the bank's expertise in sustainable finance and its ability to coordinate complex financial arrangements. The deal aligns with CIMB Niaga's broader sustainability strategy, where nearly 24% of the bank's total financing (approximately Rp54.7 trillion) is dedicated to sustainable initiatives.

Impact on Energy Sector and Regional Development

The PLTGU Batam #1 project is expected to significantly enhance the reliability of electricity supply in the Batam region, which is rapidly developing as a major industrial and economic hub. By supporting this project, CIMB Niaga is contributing to Indonesia's energy resilience and the region's economic development. The project also demonstrates how financial institutions can play a crucial role in supporting national energy targets through innovative financing solutions.

CIMB Niaga Syariah Performance

As of September 30, 2025, CIMB Niaga Syariah, the bank's Islamic banking unit, recorded total financing of Rp58.2 trillion and Third-Party Funds (DPK) of Rp57.9 trillion. These figures reflect strong customer trust and loyalty in the bank's sharia banking services. The bank continues to strengthen its funding composition by expanding low-cost funding sources through strategic partnerships based on sharia principles.