Infrastructure Financing Product Innovation – IIF Provides Credit Guarantee to BALI

Jakarta, January 2020 – PT Indonesia Infrastructure Finance (“IIF”) began this year by launching a credit guarantee facility (“CGF”) product provided to PT Bali Towerindo Sentra Tbk (“BALI”) worth Rp800 billion in bonds instruments that will be issued promptly. The signing ceremony took place at the Grand Hyatt Jakarta on January 30, 2020. The product launched by IIF is the first bond guarantee product in Indonesia. This product launch exhibits the role of IIF, which is to act as a catalyst and enabler in financing infrastructure development in Indonesia, particularly in the Capital Market industry.

In the future, the presence of CGF products is expected to further develop the corporate bond market in Indonesia. Where bond issuers have the potential to obtain an increased level of ranking, which in turn expands the investor base that can be targeted by the bond issuer.

The signing of CGF between IIF and BALI was commenced simultaneously with the Due Diligence Meeting & Investor Gathering for the issuance of BALI Tower I Phase I Sustainable Bonds 2020. Currently, BALI is in the preparation stage for corporate bond issuance where the level of rating given by PT Fitch Ratings Indonesia (FITCH) is A (single A). This rating can is achievable through the grant of credit guarantee amounting to 50% of the emission value. BALI engages three securities in the bond issuance; namely; Mandiri Sekuritas, Trimegah Sekuritas and Sinarmas Sekuritas.

Through a press release, IIF President Director, Reynaldi Hermansjah stated “With the CGF scheme offered by IIF, it is expected that there will be a relatively good increase in the level of bond rating issued, so that it can provide more attractiveness to investors to invest in these bonds, in addition to the implications on coupons that become increasingly competitive.

According to Mr. Reynaldi Hermansjah application of the principles of Social and Environmental (“S&E”) continues through projects funded by IIF, including with BALI. The S&E principles help clients identify risks and impacts related to S&E risks from each infrastructure project, one of which is the Corrective Action Plan.

In the case of BALI, the issuer has made B3 waste management documents produced from all BTS activities as well as evidence of B3 waste handling. The tower which is in a public area is also equipped with information connecting to the BTS in case of an emergency.

“The launch of the CGF facility is one form of innovation that is carried out by IIF on an ongoing basis to support the Government and the private sector in infrastructure development in Indonesia,” concluded Reynaldi Hermansjah.

 

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. The existence of IIF aims to support the development and financing of infrastructure in Indonesia by involving the private sector both domestically and internationally and multilateral institutions, thus it moves to become a catalyst.

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.

Products provided by IIF including senior loans, subordinated loans, and mezzanine loans are available in Rupiah (IDR) and US Dollar (USD) along with various fee-based services. The consulting services offered by IIF include financial consulting and project transactions offered for the Public and Private sectors.

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.

As of September 2019, IIF has funded various types of Infrastructure projects in Indonesia with an overall project value of Rp159.9 trillion, of which 80% of IIF customers are the private sector.

 

Further Queries:

Nastantio W. Hadi

SVP Legal and Corporate Secretary

PT Indonesia Infrastructure Finance

Telp. (021) 299 15060; Fax. (021) 299 15061

corsec@iif.co.id


10 Years of Developing Indonesia – One Decade Commemoration of PT Indonesia Infrastructure Finance

Jakarta, January 2020 – On January 15 2020 PT Indonesia Infrastructure Finance (IIF) marks its 10 years existence. Within these years, numerous achievements were realized. As a catalyst in sustainable infrastructure financing IIF provided ground breaking products, mostly uncommon in the financial market. In celebration of the 10th Year Anniversary, IIF hosted an event with prominent stakeholders including the current Ministry of Finance, Ibu Sri Mulyani and two former Ministry of Finance, Bapak Agus Martowardojo – who currently sits as the President Commissioner of PT Sarana Multi Infrastruktur (Persero), IIF’s majority shareholder and Bapak Chatib Basri- who currently sits as the Deputy President Commissioner of PT Bank Mandiri (Persero) Tbk, is also former President Commissioner of IIF.

IIF and Ibu Sri Mulyani has rooting relationship, as the company’s establishment is based on the mandate initiated by the Minister herself 10 years ago. It was stated during Ibu Sri Mulyani’s speech how IIF has participated in financing projects worth Rp160 Trillion, 80 times more than its equity within one decade of the company’s existence.
“An institution such as IIF become pillars to help build a credible and public collaboration culture that is truly based on noble good intentions. This is what I want to delegate PT IIF in the framework of 10 years. I want to thank all the board and members because this is a place to work where you can channel your hopes and expectations to do good for yourself even the society and nation” stated by Ibu Sri Mulyani.

Following Ibu Sri Mulyani’s speech, the Minister herself conducted tumpeng ceremony together with IIF’s President Director Bapak Reynaldi Hermansjah. Part of Ibu Sri Mulyani’s visit to IIF Office, the Minister did an office tour of IIF where the office members were greeted warmly. Other prominent invitees include representative of IIF’s Shareholders; Asian Development Bank, International Finance Corporation, and. Sumitomo Mitsui Bank Corporation.

In its 10 year work, IIF has financed the first project: the Cikampek – Palimanan Toll Road Section, Issued the first bonds worth Rp1,5 trillion, the first PPP financing in the Telko Field; Palapa Ring Tengah, first PPP financing in the field of water supply: Umbulan SPAM, and participating in the acquisition of Indonesia’s largest geothermal power plant: Wayang Windu. In 2019, IIF also entered the Social Infrastructure sector; namely hospitals and educational institutions.

PT Indonesia Infrastructure Finance:

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, that engages in infrastructure financing and advisory services that are managed professionally and focuses on commercially viable infrastructure projects. IIF’s core business aims to support the development and financing of infrastructure in Indonesia by engaging the private sector in both domestic and international and multilateral institutions, thus thriving to be a catalyst.

IIF was established on January 15, 2010  by the Government of the Republic of Indonesia. Ministry of Finance of the Republic of Indonesia along with World Bank, Asian Development Bank (ADB) and other multilateral institutions,based on Company’s Deed of Establishment. Business License was issued through the Decree of Minister of Finance (KMK) No 439/KM.10/2010.

Products provided by IIF includes senior loan, subordinate loans, and mezzanine loans available in Rupiah (IDR) and the United States Dollar (USD) along with various fee-based services. Advisory services offered by IIF covers financial advisory and project transaction catered to the Public and Private sectors.

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

 

Further Queries:

Nastantio W. Hadi

SVP Legal and Corporate Secretary

PT Indonesia Infrastructure Finance

Telp. (021) 299 15060; Fax. (021) 299 15061

corsec@iif.co.id


IIF Listed Shelf-Registration Bonds Phase I 2019

Jakarta, December 2019 – After holding an investor gathering in November 2019, PT Indonesia Infrastructure Finance (“IIF“) listed  its Shelf-Registration Bonds Phase I. The initial bond issuance ceremony took place on Thursday,  December 19,  2019. Mr. Reynaldi Hermansjah as CEO, Mr. I Made Wiracita Tantra as CRO, Ms. Devi Pradnya Paramita as CFO, Ms. Hilda Savitri as CIO and Mr. Irman Boyle as Head of the Directorate of the Group Advisory are the Executive Committee present during the event.

At this stage, IIF offers a Triple A rated bond as rated by PT Pemeringkat Efek Indonesia (Pefindo) with sum total of Rp1,5 Trillion to be issued in three series, namely Series A with a principal amount of Rp 965,000,000,000, and 6,75% coupon rate (370 days tenor); Series B with a principal amount of Rp 372,000,000,000, and 7,75% coupon rate (3 years tenor)  and Series C with a total principal amount of Rp 163,000,000,000 and 7,9% coupon rate (5 years tenor). For this issuance,  CGS-CIMB Sekuritas Indonesia, Danareksa Sekuritas, Mandiri Sekuritas, Indo Premier Sekuritas, and Trimegah Sekuritas Indonesia are the Joint Lead Underwriter (“JLU”). Acting as the Capital Market Supporting Professionals are; Assegaf Hamzah & Partners as the legal consultant, Ernst & Young as the independent auditor, and PT Bank Mega, Tbk. as the trustee.

“This issuance is the second bond issued by IIF after the first one in 2016. IIF will use the acquired funds to expand infrastructure projects financing activities in accordance with the Company’s business activities and refinancing. As of 2019 the sectors we fund the most are electricity, roads, water & waste and airports” as explained by the President Director of IIF, Mr. Reynaldi Hermansjah.

As of June 2019, IIF has channeled infrastructure development funds with a net investment commitment of more than Rp10 trillion. The total project cost surpassed Rp150 trillion, which 80% of IIF’s creditors are private sector. This milestone is a form of IIF’s commitment in accordance with its mandate as a catalyst in infrastructure development in Indonesia. In supporting sustainable infrastructure development, IIF applies Social and Environmental principles to creditors as part of financing requirements.

“It is with great pride IIF can issue bonds again after 2016. This reflects the investor’s and market’s trust in contributing to infrastructure development financing in Indonesia while enforcing Social and Environmental principles for sustainable development” as remarked by Mr. Reynaldi Hermansjah.

 

PT Indonesia Infrastructure Finance:

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, that engages in infrastructure financing and advisory services that are managed professionally and focuses on commercially viable infrastructure projects. IIF’s core business aims to support the development and financing of infrastructure in Indonesia by engaging the private sector in both domestic and international and multilateral institutions, thus thriving to be a catalyst.

IIF was established on 15h of January 2010 based on the initiative of the Republic of Indonesia – and the Ministry of Finance together with World Bank, Asian Development Bank (ADB) and other multilateral institutions. in accordance with the Regulation of the Minister of Finance of the Republic of Indonesia (PMK) No 100 of 2009 regarding Infrastructure Financing Company.

Products provided by IIF includes senior loan, subordinate loans, and mezzanine loans available in Rupiah (IDR) and the United States Dollar (USD) along with various fee-based services. Advisory services offered by IIF covers financial advisory and project transaction catered to the Public and Private sectors.

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

 

Further Queries:

Nastantio W. Hadi

SVP Legal and Corporate Secretary

PT Indonesia Infrastructure Finance

Telp. (021) 299 15060; Fax. (021) 299 15061

corsec@iif.co.id