Bank Mizuho Indonesia has lent US$30mn to local agricultural company Tunas Baru Lampung Tbk (TBL).

TBL will use the pre-export finance facility for the refining of palm oil; the financing is based on the assignment of receivables under a specific sales contract it has with the offtaker.

“The company is a palm oil processing company – they buy the fruit, refine it, and sell it to global trading houses. They have a lot of buyers, and we picked up and co-ordinated a deal with a reputable international trading house,” says Masahiro Goda, regional head, Asia, global trade at Mizuho Corporate Bank.

The bank acted as the arranger of the deal – its first with this borrower.

The transaction has a tenor of 18 months and payment will be made in 15 equal and consecutive instalments. The deal is priced at one-month Libor plus 2.75% per year.

“For international lender like ourselves, it’s sometimes difficult to access those mid-cap corporates,” Goda tells GTR. “This facility enabled TBL to get the financing it needed based on the strength of the sales contract. For us it’s a remarkable deal.”

The transaction was signed on May 16.