Introducing IIF’s Core Value to Achieve Sustainable Infrastructure Development: Participation of IIF in Sustainable Infrastructure Development.

February 2021 – For the third time, PT Indonesia Infrastructure Finance (IIF) collaborated with Bisnis Indonesia to host a webinar. The theme this time is specific about “IIF’s Participation in Sustainable Infrastructure Development in Indonesia”. This webinar is the sequel of 2 previous webinars respectively.

With over 150 participants, this webinar aims to discuss further IIF’s strength in implementing the social and environmental (“S&E”) principles throughout its funded projects. Aside from the framework thinking established by IIF, a case study from practitioners and clients were also conveyed during this webinar.

Mr Meirijal Nur, Director of Separated State Assets, DJKN, as representative from the Ministry of Finance was the keynote speaker for this session. Other distinguished speakers included Mrs. Dara M Lengkong, from the World Bank and IIF clients namely; Mr. Ricky Hartono, Director of PT Arkora Hydro and Mr. Gregorius Aryo Indradi, Head of HSESS, PT Maxpower Indonesia.

With its mandate as a catalyst of sustainable development, IIF is not only active from a business perspective but also in sharing knowledge with the community. “Our S&E principles is based on international standards which we are proud of being mandated to implement. This may seem daunting to people and potential clients, but as an agent of change we are willing to educate regarding this matter. If we see the longer horizon, our risk control not only favors the environment, but economically sound too” as explained by Mr Wito Tantra, Managing Director & CRO of PT Indonesia Infrastructure Finance.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank, Asian Development Bank (ADB) and other multilateral institutions, based on the Company’s Deed of Establishment. Business License is issued through a Decree of the Minister of Finance (KMK) Np 439 / KM.10 / 2010.

In its operations, IIF applies best practices based on international standards in providing credit, risk management and all aspects of corporate governance, and in applying international social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia.

Further Queries:
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id


IIF Virtual Race 2021: Dynamic Ride and Run

February 2021 – In commemorating the 11th anniversary, PT Indonesia Infrastructure Finance (“IIF”) debuted its virtual competition from 11 to 21 February 2021. Amidst the pandemic that has been occurring for almost a year, this does not dampen people’s interest in competition.

This initial event titled “IIF Dynamic Ride and Run 2021”(“race”) is held virtually by providing two sports branches, namely running and cycling. The running distance was 11km and for the cycling category was 111km for men and women categories.

High enthusiasm could be seen since the registration opening on 29 January 2021. The quota has sold out in just 70 minutes since its launch with participants ranging across Indonesia.

The spirits of racers in white and orange jerseys were also seen speeding fast on the streets of Jakarta. The participants who took part in this competition included former Minister of Finance Mr. M. Chatib Basri in the 111km bicycle and the Minister of Tourism and Creative Economy, Mr. Sandiaga Uno in the 11km distance running category.

“Health is a vital part of our life. Amidst pandemic, physical and mental health must be upheld. That’s why the idea behind – IIF was to invite the public to stay active and productive, by keeping strict health protocols”, said Bapak Reynaldi Hermansjah, President Director of PT Indonesia Infrastructure Finance.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010, at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank, Asian Development Bank (ADB), and other multilateral institutions, based on the Company’s Deed of Establishment. Business License is issued through a Decree of the Minister of Finance (KMK) Np 439 / KM.10 / 2010.

In its operations, IIF applies best practices based on international standards in providing credit, risk management, and all aspects of corporate governance, and in applying international social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia.

Further Queries:
Nastantio W. Hadi

Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id


PT Indonesia Infrastructure Finance Taps Into Global Bond Market

On the late of January 2021, PT Indonesia Infrastructure Finance (“IIF” or the “Company”) has successfully tapped into the U.S. dollar bond markets with the issuance of USD150 million 5-year senior unsecured sustainability Regulation S bond (the “Notes”) after completing a listing process and extensive marketing consisting of a global investor call coupled with a series of small group investor calls. The Notes are rated BBB (stable) by Fitch, on par with the Republic of Indonesia.

As a debut issuer, IIF took advantage of an opportunistic window in the global debt capital markets and the transaction received positive response from global investors with a final order size of US$390 million or oversubscription of close to 2.6x above the IIF’s target of US$150 million issuance.

The Notes, due 27 January 2026, were priced at a coupon of 1.500% and at a yield of 1.750%, representing 37.5 bps tightening from initial price guidance of 2.125% area. Thus, remarked as the lowest-ever coupon and yield for a fixed rate 5-year offering by an Indonesian company.

IIF, an Indonesia’s leading infrastructure financing and advisory institution, provides a wide range of financing products and fee-based advisory services to infrastructure projects in Indonesia and to their sponsors. Founded in 2010, IIF was established at the initiative of Ministry of Finance  the World Bank, the Asian Development Bank and other multilateral institutions as the key entity responsible to be a catalyst for the acceleration and improvement of private sector’s participation in investment into Indonesian sustainable infrastructure projects.

As of 30 September 2020, IIF has total investment assets of IDR10,651 billion. Supported by the strong capitalization from the shareholders (PT Sarana Multi Infrastruktur (Persero), International Finance Corporation, Asian Development Bank, Deutsche Investitions-und Entwicklungsgesellschaft and Sumitomo Mitsui Banking Corporation), as well as long-term subordinated loans from the World Bank and the Asian Development Bank, IIF has a very sound basis to provide solutions for financing infrastructure development in Indonesia.

IIF continues to show its commitment, leadership and contribution to sustainable financing by dedicating this Notes as sustainability bonds and to use the proceeds for the eligible green and/or social projects under its sustainability financing framework (the “Framework”). The Framework has been reviewed by Sustainalytics, who has also issued a second party opinion. This is the first-ever sustainability notes issued by an Indonesian non-banking financial institution, and highlights IIF’s prominent position and perseverance to strive in championing environmental, social, and governance (ESG) values in infrastructure financing in Indonesia.

“We express our sincerest appreciation to the Boards and Shareholders in supporting this remarkable achievement, not to mention all of IIF employees who have contributed into shaping IIF as it is today,” said Reynaldi Hermansjah, the Company’s CEO. “This exhibits not only the confidence from investors but also the high support of sustainable infrastructure development in Indonesia. We greatly value the assistance from World Bank in sharing the knowledge and experience with IIF and we are looking forward to supportive engagements on the technical assistance for post-issuance impact reporting.”

The Notes received orders from global investors who are well qualified and diversified, demonstrating strong investor appetite for IIF. By Geography, the issuance was distributed 72% to Asia and 28% to EMEA.  By Investor type, the issuance was distributed 54% to asset managers / fund managers, 23% to insurance and pension Funds, 13% to banks and remaining 10% was distributed to private banks and other investors.

The Notes settled on 27 January 2021, and listed on the Singapore Stock Exchange on 28 January 2021. Barclays Bank PLC Singapore Branch, BNP Paribas, Citigroup Global Markets Singapore Pte. Ltd., and Mandiri Securities Pte. Ltd. acted as Joint Bookrunners. BNP Paribas and Citigroup Global Markets Singapore Pte. Ltd. acted as Joint Sustainability Structuring Advisors.

The offering of the securities does not constitute a public offering or private placement in Indonesia under Law of the Republic of Indonesia No. 8 of 1995 regarding Capital Markets (the “Indonesian Capital Market Law”) and its implementing regulations, including OJK Rule No. 30 of 2019 on the Issuance of Debt-Linked Securities and/or Sukuk issued by ways of Private Placement (“OJK Rule No. 30”). This announcement is for information only and nothing in this announcement constitutes an offer of securities for sale, or a solicitation of an offer to purchase securities, in the United States of America or any other jurisdiction where such offer, solicitation or sale would be unlawful. Any such securities will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and will not and may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, any such securities will only be offered and sold outside the United States of America in offshore transactions in reliance on Regulation S under the Securities Act. No public offering of such securities will be made in the United States of America or in any other jurisdiction where such an offering is restricted or prohibited.

The securities mentioned in this announcement have not been and will not be registered with the Indonesia Financial Service Authority (Otoritas Jasa Keuangan) and will not be offered or sold in the Republic of Indonesia or to Indonesian citizens, (whether domiciled in Indonesia or elsewhere) or to Indonesian residents, in a manner which constitutes a public offering under the laws and regulations in Indonesian, including OJK Rule No. 30.


Development of Water Sector – IIF provided Senior Term Loan Facility to PT Potum Mundi Infranusantara

Jakarta, January 2021 – On 29 December 2020, PT Indonesia Infrastructure Finance (“IIF”) has signed a senior term loan agreement of Rp95.000.000.000,- (ninety five billion rupiah) with PT Potum Mundi Infranusantara (“Potum”), a subsidiary of PT Nusantara Infrastructure, Tbk. that operates in the water sector. This financing is part of IIF’s commitment as one of PTNI’s shareholder to support PTNI’s business especially in water sector.

The purpose of the facility is to finance drinking water supply system asset operated by Potum.

The signing ceremony for security documents regarding the loan agreement was conducted in IIF’s office on 5 January 2021 with the presence of; Bapak Reynaldi Hermansjah, Presiden Direktur IIF, Bapak Bayu Wirawan, Direktur Investasi IIF, Bapak M. Ramdani Basri, President Director of PT Nusantara Infrastructure Tbk., Bapak Danni Hasan, President Director of PT Potum Mundi Infranusantara, Bapak Donny Pradono Suleiman position of PT Sarana Catur Tirta Kelola, Ibu Dhejani Surjadi, Senior Vice President PT Bank Central Asia Tbk. and Ibu Sutiawati, Vice President PT Bank Central Asia Tbk.

Potum currently operates three Water Treatement Plant (WTP) with total capacity of 2.025 liter/second through its subsidiaries namely PT Sarana Catur Tirta Kelola (SCTK) located in Serang, Banten; PT Dain Celicani Cemerlang (DCC) in Medan, North Sumatera; and PT Tirta Kencana Cahaya Mandiri (TKCM) in Cikokol, Tangerang, Banten. The bulk water produced will be distributed through regional water companies to fulfill water demand for industrial and residential customers. Potum is also targeting to strengthen its business by developing new assets several areas in Indonesia, among others, development of Semarang Industrial Estate by 100 liter/second and Housing and Industrial are in Bekasi Regency by 200 liter/second.

“Water is inevitably a vital factor in sustaining people’s everyday life. This is in line with IIF’s role as a catalyst for accelerating sustainable infrastructure development in Indonesia” as explained by Bapak Reynaldi Hermansjah, President Director of IIF.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank, Asian Development Bank (ADB) and other multilateral institutions, based on the Company’s Deed of Establishment. Business License is issued through a Decree of the Minister of Finance (KMK) Np 439 / KM.10 / 2010.

In its operations, IIF applies best practices based on international standards in providing credit, risk management and all aspects of corporate governance, and in applying international social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia.

Further Queries:
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id