PROJECT FINANCE CEO Letter to Project A-Team We plan to construct the toll road from Cikarang to Sentul directly, without going through Cikampek. This toll road is estimated to be 20 km long with a 4-lane (2 meter/lane) road width. It is estimated that every day 20,000 cars will pass this toll road at an estimated cost of 15,000 per vehicle The toll road development plans are as follows: 1. Land acquisition of 10 x 20 km is estimated for 12 months 2. The toll road construction will take 24 months to be built three months after the acquisition. 3. Finalization of the Toll Road for two months 80% of the funding will be taken from a loan and 20% of capital from investors. The toll road construction costs Rp. 70 million/meter, and land acquisition costs 1 million/meter. Meanwhile, the finalization requires Rp. 2 billion. The estimated maintenance costs are 100,000 / meter per month. Several bank loan alternatives 1. Issuance of 20 years tenor bonds with interest at JIBOR + 1%. JIBOR is currently 3% pa.. expected to increase to 5% pa in 2025 and beyond. 2. Issuance of 10 years tenor bonds with a fixed interest rate of 5% and ten years floating with JIBOR + 2%. 3. Bank syndicated loan with a tenor of 15 years and can be extended for another five years with an interest rate of 7% per annum. With the three alternatives above, which one gives investors the best return and matches the project needs on funding? Note: Investors expect to have at least a 5% per annum return. PROJECT FINANCE CEO Letter to Project A-Team We plan to construct the toll road from Cikarang to Sentul directly, without going through Cikampek. This toll road is estimated to be 20 km long with a 4-lane (2 meter/lane) road width. It is estimated that every day 20,000 cars will pass this toll road at an estimated cost of 15,000 per vehicle The toll road development plans are as follows: 1. Land acquisition of 10 x 20 km is estimated for 12 months 2. The toll road construction will take 24 months to be built three months after the acquisition. 3. Finalization of the Toll Road for two months 80% of the funding will be taken from a loan and 20% of capital from investors. The toll road construction costs Rp. 70 million/meter, and land acquisition costs 1 million/meter. Meanwhile, the finalization requires Rp. 2 billion. The estimated maintenance costs are 100,000 / meter per month. Several bank loan alternatives 1. Issuance of 20 years tenor bonds with interest at JIBOR + 1%. JIBOR is currently 3% pa.. expected to increase to 5% pa in 2025 and beyond. 2. Issuance of 10 years tenor bonds with a fixed interest rate of 5% and ten years floating with JIBOR + 2%. 3. Bank syndicated loan with a tenor of 15 years and can be extended for another five years with an interest rate of 7% per annum. With the three alternatives above, which one gives investors the best return and matches the project needs on funding? Note: Investors expect to have at least a 5% per annum return