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.
Nastantio W. Hadi
SVP Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 299 15060; Fax. (021) 299 15061