Standard Chartered Said to Fully Fund $1 Billion Borneo Loan

Jan. 26 (Bloomberg) -- Standard Chartered Plc fully funded a $1 billion loan sought by Jakarta-based coking coal maker PT Borneo Lumbung Energi & Metal, said a person familiar with the matter.

Standard Chartered, which is arranging syndication of the five-year loan, funded the facility on Jan. 20, said the person, who declined to be identified because the details are private.

The loan continues to be marketed in senior syndication after funding, the person said, referring to the process by which a loan is pitched to a limited number of banks, most of which would have an existing relationship with the borrower.

The facility is expected to be marketed more broadly as part of general syndication in February, according to the person.

The loan was first marketed to a select group of banks in November as part of senior syndication.

Borneo said on Jan. 20 that it had bought a 23.8 percent stake in coal producer Bumi Plc from PT Bakrie & Brothers. It said in November it would use $1 billion in funding from Standard Chartered for the acquisition.

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