Sarana Multi Infrastruktur seeks Rp2.7tn debt from capital market

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Sarana Multi Infrastruktur cari utang dari pasar modal Rp2,7 T

20 November 2024

Jakarta, ID – Infrastructure financing state-owned enterprise (SOE) PT Sarana Multi Infrastruktur (SMI) will seek new funds from the capital market through the issuance of Continuous Bond Phase II Year 2024, valued at Rp2.7 trillion. The funds will be utilised to finance infrastructure projects across various regions in Indonesia.

SMI's management disclosed that the bond will be issued in four series. Series A is valued at Rp350 billion with an interest rate of 6.30% and a tenure of 370 days. Series B is valued at Rp600 billion with an interest rate of 6.70% and a tenure of 3 years. Series C is valued at Rp543.99 billion with an interest rate of 6.95% and a tenure of 5 years. Finally, Series D is valued at Rp1.2 trillion with an interest rate of 7.00% and a tenure of 7 years.

“Regarding this public offering of bonds, the company has received a rating of idAAA or triple A from PT Pemeringkat Efek Indonesia (Pefindo),” SMI’s management stated in a prospectus published on Tuesday (19/11/2024).

The company has appointed PT BNI Sekuritas, PT BRI Danareksa Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas and PT Trimegah Sekuritas Indonesia Tbk to underwrite the bond issuance. Meanwhile, PT Bank Mandiri Tbk will act as the bond trustee.

The public offer period will run from 2 to 3 December 2024, followed by the allotment date on 4 December. The refund of the order money and the electronic distribution of the bonds will take place on 6 December, and the listing on the Indonesia Stock Exchange (IDX) will occur on 9 December 2024.

SMI was established to accelerate national infrastructure financing by obtaining funding sources from multilateral organisations. The scope of the infrastructure sector financed by the company includes providing financing facilities for infrastructure projects, offering other facilities related to infrastructure financing after obtaining approval from the Financial Services Authority (OJK), custody and management of trust funds for and on behalf of third parties and providing other facilities not related to infrastructure financing based on government assignments.

The company is currently preparing several Public-Private Partnership (PPP) projects in the water, waste, housing, education, health, and transportation sectors, as well as providing input on the preparation of the bill concerning the implementation of the PPP scheme by the Nusantara Capital City Authority (OIKN). In the future, the company is expected to contribute to infrastructure preparation in the capital city.

Besides that, to increase contributions to public and regional financing, the company will expand its financing scope to include the water, waste, and health sectors, as well as programme financing with thematic multi-sectors (farming, housing, health, and social sectors, such as the government-assigned stunting reduction programme). Loans for this programme are intended to provide alternative financing to regional governments, boost policy and institutional reforms, and achieve the target performance of the development programmes/sub-programmes of the regional governments.

Currently, 100% of SMI's shares are owned by the Indonesian government. SMI has four subsidiaries, namely PT Indonesia Infrastructure Finance with an ownership of 30.00%, PT Cimanggis Cibitung Tollways (55.00%), PT Trans Jabar Tol (51.78%), and PT Cinere Serpong Jaya (34.99%).

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