Indonesia’s Chandra Asri in talks with lenders to fund US$1 billion deal to buy Singapore’s Esso stations

Chandra Asri Pacific, an Indonesian energy and chemicals firm, is in talks with competing consortiums of lenders for loans to back its US$1 billion purchase of Esso-branded service stations in Singapore from ExxonMobil, according to people familiar with the matter.

Chandra Asri is in talks with Global Atlantic, the insurance arm of KKR & Co, for a US$750 million unitranche facility, the people said, with Chandra Asri funding the remaining US$250 million using its own equity.

Separately, the group is in talks with a group of banks for a senior loan of up to US$600 million and concurrent mezzanine financing of around US$250 million from a group of private credit funds, the people said. The funds include sovereign wealth fund Indonesia Investment Authority (INA), Allianz Global Investors and private credit fund Ares Management, the people said, adding Chandra Asri would fund the remainder using its own equity.

Chandra Asri is also in talks with at least one other fund for a loan to back the acquisition, people familiar said. Discussions are ongoing and terms may change, the people said.

Chandra Asri said on Oct 24 that it signed a sale and purchase agreement to acquire the fuel stations through a special purpose vehicle under a wholly owned subsidiary of the group. The purchase is subject to regulatory approval and the company aims to complete it by the end of the year.

Spokespeople for Chandra Asri, Global Atlantic, Allianz, INA and Ares declined to comment. BLOOMBERG