Green Bonds

As a concrete step in supporting the achievement of the Sustainable Development Goals, PT SMI has a strong commitment to sustainable development through the provision of financing facilities for environmentally sound infrastructure projects in Indonesia. PT SMI’s commitment is also in line with the commitment of the Government of Indonesia in realizing the Paris Agreement commitment which aims to protect and maintain ecosystems and environmental quality.

In 2018, PT SMI issued the first Green Bond in Indonesia. Green Bond Berkelanjutan I Sarana Multi Infrastruktur has a total facility worth IDR 3 trillion. PT SMI issued the Stage I Year 2018 emission amounting IDR 500billion that are specifically intended to finance projects that have environmental benefits, encourage the process of transition to the growth of climate resilience and low carbon, and aim to protect, conserve and / or improve quality and environmental functions.

 

Green Bond Framework

  

PT SMI has created a Green Bond Framework which regulates the mechanism for project selection and the use of proceeds and the reporting mechanism. The World Bank Group, which is one of the pioneers for the issuance of the Green Bonds worldwide with a total value of issuance of more than USD 11 billion, provided technical assistance to PT SMI in the preparation of this framework. The framework is not only in accordance with the provisions of the Indonesian Financial Services Authority (“OJK”), but also in accordance with the basic principles of the Green Bond Principles and ASEAN Green Bonds Standards which are international standards related to Green Bonds issuance.

The categories of projects that are eligible to be financed by PT SMI’s Green Bond proceeds are projects that have the purpose of protecting, conserving, and / or improving the quality and function of the environment, which includes:

 

Second Opinion from Environmentalist

The Center for International Climate Research-Oslo (“CICERO”) is a leading environmental expert in the world and has been chosen to provide Second Opinion to PT SMI’s Green Bond Framework. On April 27, 2018, CICERO gave a “Medium Green” opinion to the Green Bond of PT SMI.

Green Bond Berkelanjutan I Sarana Multi Infrastruktur

Total Facility: IDR 3 trillion

Stage I Year 2018 – IDR 500 billion

DescriptionValueTenorCouponMaturityRating
Tranche AIDR 100 billion3 years9,60%11-Jun-17idAA+
Tranche BIDR 900 billion5 years10,0%11-Jun-19idAA+

Rating Agency: PT Pemeringkat Efek Indonesia (Pefindo)

Trustee: PT Bank Mandiri (Persero) Tbk

Download: