Indonesia Infrastructure Finance issues Continuous Bonds II worth Rp500 billion
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 - Indonesia Infrastructure Finance terbitkan Obligasi Berkelanjutan II Rp500 miliar
23 November 2023
Jakarta - PT Indonesia Infrastructure Finance (IIF) will issue bonds worth Rp500 billion to strengthen their work capital to develop sustainable infrastructure projects in Indonesia.
IIF President Director Reynaldi Hermansjah sees that the massive construction of various infrastructure projects in Indonesia needs to be positively welcomed. Hence, IIF will issue bonds to seize the opportunity.
“Welcoming the momentum, the company is taking a strategic step to issue Indonesia Infrastructure Finance Continuous Bonds II Phase I Year 2023 to strengthen their work capital to net the potential from the development of sustainable infrastructure projects,” he explained in his official statement on Wednesday (22/11/23).
From the fundraising activity, IIF is targeting to obtain Rp500 billion from the bonds that are issued in three series, namely series A, B, and C. In series A, the bonds offered will have a tenor of one year with coupons that range from 6.25% to 6.95%. Meanwhile, series B will offer bonds with a tenor of three years with coupons that range around 6.6%-7.10% and series C will offer bonds with a tenor of five years with coupons that range around 6.75%-7.25%.
The Financial Services Authority (OJK) has granted a pre-effective statement in November 2023 and PT Pemeringkat Efek Indonesia (Pefindo) has provided an AAA rating for the bond issuance.
The bonds are planned to be issued on 15-18 December 2023. Then, the allotment will be carried out on 19 December 2023. The electronic distribution is planned to be implemented on 21 December 2023, and finally, the recording date is set for 22 December 2023.
IIF has appointed Mandiri Sekuritas as the lead arranger. BCA Sekuritas, BRI Danareksa Sekuritas, BNI Sekuritas, and Indopremier are entrusted by IIF to be the underwriters. Meanwhile, Bank Mega will act as the trust agent.
IIF’s other mission from the bond issuance is to encourage citizens to participate and contribute to the growth of sustainable infrastructure projects in Indonesia through investments.
Sustainable infrastructure projects that are targeted by the company are projects that implement the environmental, social, and governance (ESG) principles.
