PT SMI successfully obtained the offshore Sustainability-Linked Syndicated Term Loan Facility worth USD 700 million

JAKARTA, Indonesia, Sept. 13, 2023 /PRNewswire/ -- PT Sarana Multi Infrastruktur (Persero) ("PT SMI") has successfully completed the process of obtaining its first-ever, Sustainability-Linked Syndicated Term Loan Facility from  a number of banking partners across geographies including Indonesia, Singapore, Japan, Hong Kong, Taiwan and South Korea. This syndicated term loan facility amounting to USD700 million or around IDR 10.65 trillion is intended to refinance the maturing offshore USD700 million Syndicated Term Loan Facility obtained in 2020.

The transaction was supported by several Mandated Lead Arrangers & Bookrunners (MLABs) namely Bank of China (Hong Kong), CTBC Bank Co., Ltd., DBS Bank, Mizuho Bank, MUFG Bank Ltd, and United Overseas Bank (UOB). UOB also acted as the MLABs' Coordinator and the overall Sustainability Coordinator for this transaction. PT SMI engaged Environmental Resources Management ("ERM") as the second party opinion provider, to provide a review on the Key Performance Indicators (KPI) and Sustainability Performance Targets (SPT) for the transaction.

To mark the completion of the landmark transaction, PT SMI held a closing ceremony at Sahid Sudirman Center, Jakarta, on Wednesday, September 13^th, 2023. The event was attended by the firm's Board of Commissioners and Directors, representatives from the MLABs and the syndicate, as well as representatives from the Ministry of Finance, the National Development Planning Agency and Bank Indonesia.

President Director of PT SMI, Edwin Syahruzad, is pleased with the success of the loan facility. "We are grateful for the trust given to PT SMI. This Sustainability-Linked Syndicated Term Loan Facility is a real example of innovative fundraising, by also implementing our commitment towards sustainability target. We hope that in the future, PT SMI can continue to collaborate with various parties in the subsequent fundraising activities."

Lim Lay Wah, Managing Director, Head of Sector Solutions Group and Global Financial Institutions Group, said "We are very pleased to continue our relationship with PT SMI and act as the Sole Coordinator and Sole Sustainability Coordinator in this landmark transaction. We remain committed to extend our financial expertise and solutions in support of Indonesia's infrastructure sustainable development. This is a testament to the strong market confidence in PT SMI as a vital catalyst for the country's national infrastructure goals."

With a target size of USD 700 million, the strong market liquidity resulted in an oversubscription with aggregate commitments at c. USD 1.80 billion. This syndicated loan is intended to refinance existing projects as well as to fulfill new financing needs primarily for sustainable infrastructure projects in Indonesia, which will further strengthen the asset liability management of the company. Various projects that have been facilitated by PT SMI (across sectors) have in turn created a large multiplier effect (up to 27.62x of paid-up capital as per June 2023).

The sustainability-Linked loan features concrete performance targets that are in line with PT SMI's commitment to Environmental Social Governance (ESG). This includes key performance indicators: 1) To Grow the Sustainability Financing Portfolio and 2) To increase the number of employees undertaking ESG-related trainings.

PT SMI has raised funds from various sources including from the capital markets, banking, and multilateral/development finance institutions. Since 2014, PT SMI has been actively issuing bonds with good response and has been oversubscribed several times, both by local and foreign investors. With total bonds issued exceeding IDR 45 trillion, PT SMI is one of the top issuers based on outstanding amount in Indonesia.

The trust given by the investors to PT SMI is strengthened by the corporate ratings given by local as well as international rating agencies. PT SMI received idAAA (outlook stable) rating from Pefindo on April 5^th, 2023 and also received BBB international rating and AAA(idn) (outlook stable) from Fitch Ratings on 28th March 2023 remained consistent in line with the previous period (and sovereign ratings) given that PT SMI is classified as an entity related to the GoI with strong parental support. The ratings reflect the strong position of PT SMI as an essential government-related entity with enormous infrastructure financing potential, strong capitalization profile, and robust liquidity indicators poised to advance the GoI's national development agenda.

About PT Sarana Multi Infrastruktur (Persero) ("PT SMI")

PT Sarana Multi Infrastruktur (Persero) ("PT SMI") was established on February 26, 2009 as a State-Owned Enterprise under the coordination of the Ministry of Finance as a Non-Bank Financial Institution, with a role and mandate to act as a catalyst for the acceleration of infrastructure development.

PT SMI has various functions and unique products/features to support the acceleration of infrastructure development which not only functions as an infrastructure financing but also as an enabler through the implementation of a Public Private Partnership (PPP) scheme, which includes various financial institutions, both private and multilateral. PT SMI actively supports the PPP implementation and encourages the acceleration of infrastructure development in the regions through regional loan products.

PT SMI has three business pillars, namely (1) Funding and Investment, financing for infrastructure projects, (2) Consultancy Services, solutions to the needs of professionals and experts in the infrastructure sector, and (3) Project Development, assistance for the Person in Charge of Cooperation Projects (PJPK) in preparing infrastructure projects.

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