News Updates 14 September 2023
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PT SMI Receives USD700 Million Green Syndicated Loan From 6 Countries

Infrastructure financing company PT Sarana Multi Infrastruktur (Persero) succeeded in obtaining a sustainability-linked syndicated term loan facility worth US$700 million or around Rp. 10.65 trillion, from several banking partners spread across 6 countries. PT SMI President Director, Edwin Syahruzad explained that this sustainability-themed fundraising confirms the trust of national and international banking partners, including Singapore, Japan, Hong Kong, Taiwan and South Korea.

"This facility is a real example of innovative fundraising, by implementing our commitment to sustainability targets. We hope that in the future PT SMI can continue to collaborate with various parties in future fundraising activities," he said in an official statement, Wednesday (13/9 /2023).

Meanwhile, the loan facility will be used to refinance a syndicated loan worth US$700 million which was obtained in 2020 and has matured. Supported by strong market liquidity, PT SMI succeeded in obtaining a financing commitment of US$1.8 billion or an oversubscription of more than 2.5 times the funding target of US$700 million. This syndicated loan is intended to finance ongoing projects, as well as new financing, especially for sustainable infrastructure projects in Indonesia, which will further strengthen the company's asset and liability management.

Various projects facilitated by PT SMI have created a large multiplier effect, up to 27.62x paid-in capital as of June 2023. These sustainability-related loans have concrete performance targets that are in line with PT SMI's commitment to Environmental Social Governance or ESG. This includes key performance indicators, namely growing the sustainable financing portfolio, as well as increasing the number of employees who take part in ESG-related training.

PT SMI has collected funds from various sources, including the capital market, banking and multilateral financial institutions or Development Finance Institutions. Since 2014, PT SMI has been actively issuing bonds with a good response and several times experiencing oversubscription, both by local and foreign investors. With total bonds issued exceeding IDR 45 trillion, PT SMI is one of the issuers with the top outstanding corporate bonds in Indonesia.

The trust given by investors to PT SMI is strengthened by the company ratings given by local and international rating agencies. PT SMI received an idAAA (outlook stable) rating from Pefindo on April 5 2023 and an international rating of BBB and AAA(idn) (stable outlook) from Fitch Ratings on March 28 2023, showing consistency compared to the ratings in the previous period. Currently PT SMI's rating as a BUMN is also equivalent to Indonesia's sovereign rating, with the Government of the Republic of Indonesia as a shareholder. The rating reflects PT SMI's strong position as an important entity with large infrastructure financing potential, a strong capital profile and good liquidity indicators, indicating PT SMI's readiness to support the Indonesian Government's national development agenda.

This syndication facility is supported by several Mandated Lead Arrangers & Bookrunners, namely Bank of China (Hong Kong), CTBC Bank Co., Ltd., DBS Bank, Mizuho Bank, MUFG Bank Ltd, and United Overseas Bank (UOB). Apart from acting as the MLABs coordinator, UOB also acted as the Sustainability Coordinator for this transaction. PT SMI also appointed Environmental Resources Management (“ERM”) as a second party opinion provider to provide a review of the Key Performance Indicators (KPI) and Sustainability Performance Target (SPT) for this transaction.

To mark the completion of the transaction, PT SMI held a Financial Closing event at the Sahid Sudirman Center, Jakarta, on Wednesday, September 13 2023. The event was attended by the Board of Commissioners and Directors of PT SMI, representatives from MLABs and syndicated participants, as well as representatives from the Ministry of Finance, National Development Planning Agency, and Bank Indonesia. Head of Global Financial Institutions Group UOB Lim Lay Wah explained that his party is committed to contributing our expertise and providing financial solutions to support sustainable infrastructure development in Indonesia. "This is proof of the strong market confidence in PT SMI as an important catalyst for achieving infrastructure goals in Indonesia," he said.



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