The listing of these two instruments on the IDX holds particular significance for IIF in terms of alternative funding sources and marks a new achievement for IIF in the Indonesian capital market sector.

In the issuance of Sustainable Bond II of Indonesia Infrastructure Finance Phase I in 2023, IIF played a catalytic role, evidenced by a substantial retail investor participation reaching nearly 65%, even though this bond was not specifically identified as a retail bond. This reflects IIF’s ongoing efforts to promote the concept of sustainable infrastructure financing.

On another note, the Perpetual Bond issued by IIF in 2024 is a thematic instrument primarily aimed at strengthening IIF’s capital structure. The funds raised will be used to finance sustainable infrastructure projects based on Environmental Business Activity Principles (KUBL) in Indonesia. This Perpetual Bond has no maturity date but includes an option for early redemption of the principal after five years and on each anniversary thereafter.

Furthermore, regarding the issued securities, this instrument represents a breakthrough in the Indonesian capital market as it is the first to utilize a public offering mechanism in Indonesia. It is also the first instrument to implement the regulations outlined in POJK 11/2018 concerning public offerings of debt securities and/or sukuk to professional investors.

Reynaldi Hermansjah, President Director of IIF, stated that the yield rates set are competitive to attract public interest and participation. “The coupon for Sustainable Bond II of Indonesia Infrastructure Finance Phase I in 2023 is set at 6.45% for a tenor of 370 days; 6.70% for a three-year tenor; and 6.80% for a five-year tenor. Additionally, the yield for the Green Perpetual Bond of Indonesia Infrastructure Finance in 2023 is set at 8.25% per annum, which we consider competitive. This effort aims to engage public participation to support the growth of sustainable infrastructure projects in Indonesia,” Reynaldi stated.

He also expressed that IIF contributes to diversifying investment instruments in the Indonesian capital market. “With the issuance of these two instruments, we are very pleased to participate in enriching investment diversity in the Indonesian capital market, particularly through IDX. This also aims to increase the number of sustainability-based instruments or what are often referred to as Green Instruments,” Reynaldi added.

On another note, Pefindo, an independent rating agency, assigned an idAAA (triple A, stable outlook) rating to Sustainable Bond II of Indonesia Infrastructure Finance Phase I in 2023 and an idAA (double A, stable outlook) rating to the Green Perpetual Bond of Indonesia Infrastructure Finance in 2023—two levels below the corporate rating (idAAA), reflecting the junior position of the Perpetual Bond as it is classified as additional tier one capital with characteristics allowing for deferral of yield payments.As of September 2023, IIF recorded credit disbursement reaching IDR 13 trillion, with renewable energy projects dominating its financing achievements. With a stronger capital structure, IIF will have greater flexibility in expanding its business, especially regarding environmentally conscious infrastructure project financing.

Regarding revenue, by September 2023, IIF’s interest income grew by 15% to IDR 1 trillion year-on-year (yoy), while non-interest income increased by 53% to IDR 83.8 billion (yoy). These achievements contributed to a net profit growth of IIF by 17% to IDR 68.4 billion (yoy) as of September 2023.