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# OCBC leads US$245m financing for Indonesian nickel-cobalt plant
- URL: https://www.southeastasiaconnect.com/ocbc-245m-enc-nickel-cobalt-financing-indonesia-20261022/
- Published: 2026-10-22T11:00:02.000Z
- Updated: 2026-10-22T11:00:02.000Z
- Description: The project operator can draw on the loan after conditions are met. Suppliers and battery-material buyers can track financing before relying on planned output.
- Author: Southeast Asia Editorial Team
- Tags: News, #google-news, Indonesia, Critical Minerals

[Nickel Industries](https://nickelindustries.com/?ref=southeastasiaconnect.com) has disclosed a signed US$245 million project-finance facility led by Singapore’s OCBC for the Excelsior Nickel Cobalt (ENC) processing plant in Indonesia. For suppliers, battery-materials buyers and lenders tracking the project’s ramp-up, the agreement changes its financing position. It does not show that the operator has drawn the money or delivered planned output.

Indonesian operator PT Fajar Metal Industry signed the non-recourse facility, according to Nickel Industries’ 21 October market announcement. The operator owns the ENC high-pressure acid leach project in the Indonesia Morowali Industrial Park. It is wholly owned by the ENC joint venture, in which Nickel Industries has a 46% interest.

## What the signed facility covers

The US$245 million consists of a US$220 million amortising term loan and a US$25 million working-capital facility. The term runs for seven years from the first drawdown. The announced margin is 2 percentage points a year above the Secured Overnight Financing Rate. The loan is secured over the Indonesian operator’s project assets and is non-recourse to Nickel Industries. A first drawdown remains subject to customary conditions precedent.

Nickel Industries says its 46% ENC holding is equity accounted, so the facility will not be consolidated into its group debt or affect its existing group financial covenants. The operator may distribute money to shareholders from term-loan proceeds, with Nickel Industries entitled to its 46% share of any such distribution. The announcement does not establish that a distribution has occurred; it depends on proceeds from a future draw.

The agreement also contains an option to increase the term loan in future, potentially to US$800 million. That larger amount is possible capacity, not committed financing. The issuer says the Indonesian operator is still discussing participation with other banks and would update the market if further lenders join.

Nickel Industries describes ENC as commissioning and ramping toward nameplate capacity. Its stated production expectations are forecasts, not evidence of current output or a buyer supply commitment. The company also cites sulphur disruption and drought as challenging 2026 conditions for the sector; this financing announcement does not establish that those operating pressures have been resolved. The next relevant checks for counterparties are whether conditions for first drawdown are met, whether further lenders commit, and what the operator reports about actual production.

**Source:** [Nickel Industries market announcement, 21 October 2026 (PDF)](https://nickelindustries.com/carbon/assets/0007ea/00000a/3139034.pdf?ref=southeastasiaconnect.com).