Toll Road - Photo by PT Nusantara Infrastructure Tbk

JAKARTA (TheInsiderStories) PT Sarana Multi Infrastruktur (SMI), a state-owned infrastructure funding company, will issue Rp828.5 billion (US$56.36 million) bond, according to Indonesian Central Securities Depository. The bond consists of two series and will be recorded on Dec. 5, 2018.

The series A bond worth for Rp635 billion with 8.2 percent interest. While the series B valued Rp193.25 billion with 8.7 percent interest. The series A’s maturity date is in December 2019, and series B is in December 2021.

SMI has planned to offered as much as Rp1.5 trillion in this year. The remaining around Rp671.75 billion is still on underwriter securities guarantee.
In 2016, the agency targeted to issue Rp30 trillion ond maximum. But until the end of 2017, the company has only issued Rp12.5 trillion.

Last July, SMI has issued the first green bond in Indonesia worth of Rp500 billion. The unit of Ministry of Finance (MoF) has plan to issue green bond as much as of Rp3 trillion within a few years.

The issuance of the green bond is an important step taken by SMI to support the achievement of the Sustainable Development Goals in the country. Its commitment is in line with the commitment of the Government of Indonesia in realizing the Paris Agreement’s commitment to protect and sustain ecosystems and environmental eminence.

The Center for International Climate Research-Oslo, the world’s leading environmental research center (CICERO) has given SMI a Medium Green opinion. SMI will allocate the proceeds of green bond to finance sectors such as renewable energy, clean transportation, as well as sustainable water and waste management.

The World Bank Group as one of the pioneers of the green bond market with a total value of more than $11 billion issuance, has provided technical assistance with CICERO to SMI in preparing a green bond framework that is aligned with the internationally-developed Green Bond Principles and ASEAN Green Bond Standards.

This has established Indonesia as one of the first Southeast Asian countries to adopt both standards. This collaboration took place under a broader capital market and infrastructure finance technical assistance programs supported by the Swiss State Secretariat for Economic Affairs and Global Affairs Canada.

In addition to the green bond, SMI also issued an Rp1 trillion SUKUK as a part of the first phase of another Rp3 trillion program. SMI has been providing sharia-based financing since 2017. It also became one of SMI’s commitment to encourage the entry of sharia market players in infrastructure development in Indonesia.

SMI was founded on Feb. 26, 2009 which has a mandate as a catalyst in supporting the acceleration of infrastructure development in Indonesia. SMI plays an active role in supporting the implementation of PPP and encourages the acceleration of infrastructure development in the region through regional financing product.

US$1: Rp14,700

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