Deutsche Bank and Credit Suisse have combined to provide an export credit loan of US$121mn.

Indonesian port operator PT Pelabuhan will use the funds for the purchase of 10 ship-to-shore cranes and 20 automated stacking cranes from Finnish company Konecranes for the Teluk Lamong terminal at PT’s port in Surabaya, Indonesia. The Finnish ECA, Finnvera, has provided 100% cover for the loan.

“The transaction was equally shared with the other participating bank and has a nine-year door-to-door tenor,” Evert-Jan Zondag, head of structured trade and export finance for Asia Pacific at Deutsche Bank, tells GTR.

Konecranes will deliver the equipment in several shipments starting in 2014, with the first 25 units sent in March and the remainder sent after the terminal is completed.

Indonesia remains an important country for Deutsche Bank’s trade finance business, Zondag points out: “If you look at the Asian market in 2012, Indonesia was the second-largest corporate borrower export credit agency market, just behind the Indian market. We expect to see more first-time borrowers from diverse industry segments taking advantage of this type of loan in order to access US dollar liquidity or to diversify their sources of funding.”

This increase in first-time borrowers has been pegged as part of an overall increase in imports and exports from the Southeast Asian country by SMEs, which the new port terminal should help to facilitate.

This growth will include more trade with Finland, Topi Vesteri, vice-president of Finnvera explains to GTR: “I expect Indonesia to continue to be a very important market for Finnish exporters in 2014 as well.”