IIF supports the inaugural issuance of Indonesian Komodo Bond for Jasa Marga

Posted on

JAKARTA -PT Jasa Marga (Persero) Tbk (“JSMR”)’s Komodo Bond is the first IDR denominated USD settled Global Bond issued in Indonesia. The purpose of the issuance is to diversify funding sources for JSMR in order to finance JSMR’s expansion plan to double up their operating toll road to 1,260 Km by 2019. The issued amount is IDR 4 Trillion or equivalent to USD 300 million with 3 years tenor and offered pricing at 7.5%.

JSMR and this Komodo Bond has obtained international rating of Baa3 (positive outlook) from Moody’s and BB+ (Stable outlook) from S&P

As domestic infrastructure financing company, IIF’s role in this transaction is considered crucial to build confidence from other local and international buyers. This is evidenced by and oerwhelming oversubcription of more 4 times the total issued amount.

IIF believes that this only confirms international confidence in a bouyant infrastructure financing market in Indonesia.

Signing of Loan Agreement for Renewable Energy and Indonesia Infrastructure Project between IIF and JICA

Posted on

JAKARTA- PT Indonesia Infrastructure Finance (IIF) has entered into a loan agreement for the amount of JPY 8 billion with Japan International Cooperation Agency (JICA) in Jakarta. The above mentioned agreement has an objective to provide the mobilization of private funds and contributing improvements of business and investment in Indonesia.

IIF, a private non-bank financial institution under the Ministry of Finance focusing on financing infrastructure development, which was established in 2010 as part of strategy of the Indonesian government and multilateral institutions to facilitate the commercial capital needed to fund the infrastructure sector in Indonesia. IIF has invested in highways, seaports, airports, telecommunications, Hydro and gas-fired power plant, and renewable energy. Year to date, IIF has expected to book a total of infrastructure loan commitments by more than Rp 13 trilion by the end of 2017.

JICA Disbursed Rp.1 Trillion in Funds to Indonesia Infrastructure Finance

Posted on

JAKARTA, KOMPAS – Indonesia Infrastructure Finance has signed a loan agreement amounting to 8 billion yen or around Rp 1 trillion with Japan International Cooperation Agency (JICA).

“This facility is another proof of how the international market has given us trust, also shows our commitment to develop infrastructure projects that are in line with social and environmental standards, especially those related to renewable energy,” said President Director of Indonesia Infrastructure Finance Arisudono Soerono through his official statement. in Jakarta, Monday (11/12).

He added, the funding support is expected to help increase business and investment to accelerate economic growth through private sector participation.

In addition, the loan is also expected to support Japanese companies and other international actors to participate in infrastructure projects in Indonesia.

For information, the National Development Planning Board of the Republic of Indonesia (BAPPENAS) estimates that Indonesia will need funds of Rp.5,519 trillion in the five-year period from 2015 to 2019.

The assumption is that 30 percent of this amount comes from mobilization from private funds. Thus the participation of private investment is needed in the infrastructure sector.

Previously, JICA signed a memorandum of understanding with the Indonesian government regarding loan funds for the construction of Patimban Port in West Java and the campus at Gadjah Mada University (UGM). The total loans for the two projects amounted to 127,215 billion yen, equivalent to Rp. 15.2 trillion.

Source: Kompas.com