PT SMI Officially Issues Sustainable Funding Framework And Sustainable Bonds

JAKARTA - PT Sarana Multi Infrastruktur (Persero) or PT SMI launched a Sustainable Public Offering (PUB) of Shelf-Registered Bonds I Sarana Multi Infrastruktur Phase I 2025 with a target of IDR 1 trillion.

For information, these bonds are divided into three series, consisting of Series A with a tenor of 370 days with a coupon of 6.15 percent' 6.50 percent, Series B with a tenor of 3 years with a coupon of 6.25 percent' 6.75 percent, and Series C with a tenor of 5 years with a coupon of 6.25 percent' 6.80 percent. percent.

President Director of PT SMI Reynaldi Hermansjah said that the total value of PUB Sustainability Bonds I Sarana Multi Infrastruktur was IDR 12 trillion.

He added that the bonds had obtained an idAA (Triple A) rating from PT Pemeringkat Efek Indonesia (Pefindo), which showed the best credit quality with a very low risk of default for long-term debt.

In addition, Reynaldi said that his party also launched the Sustainable Funding Framework or Sustainable Funding Framework as the basis for developing sustainable financial instruments.

"Through this framework, PT SMI expands access to thematic funding which is the basis for the issuance of various sustainable financial instruments, such as the Sustainable Sustainable Bond I which is in the process of being published," he said at the launch of the Sustainable Funding Framework, Monday, June 23.

Reynaldi added that this launch was an invitation for investors to collaborate in financing sustainable projects.

In addition, he said that the Sustainable Funding Framework was an important milestone in encouraging the issuance of financial instruments such as Sustainable Sustainability Bonds I.

"We want to ensure that every instrument we offer is not only financially competitive, but also has a social impact and that each instrument we offer is not only financially competitive, but also has a real social and environmental impact, because 100 percent of the funds raised will be channeled to projects that produce measurable environmental and social impacts. This framework can also give confidence to all of you, potential investors, through strong transparency and governance," he said.

The Sustainable Funding Framework is designed to support various financing schemes with the theme Green, Social, Sustainability, Blue, and Orange Bonds, as well as support the achievement of the goals of Sustainable Development Goals (SDGs).

Meanwhile, the preparation refers to international standards such as Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines from ICMA, as well as Blue Bonds Guidelines from IFC and Orange Bond Principles from Orange Movement.

The instruments covered by this framework include Bonds, Medium-Term Notes (MTN), Bank Loans, Sukuk and Sharia Financing Facilities, and other Sustainable Funding instruments.

In addition, this Framework has obtained validation from the independent agency Sustainalytics through the provision of Second Party Opinion (SPO), which expresses the suitability of the framework to global standards and high credibility.

"The results of the SPO confirm that PT SMI's framework is considered credible and has an impact, in line with global principles, and is supported by a transparent, structured selection, evaluation and reporting process. This assessment also strengthens the position of PT SMI as a trusted issuer and borrower in the eyes of investors, both domestic and global. ," he said.

Reynaldi added that coupon payments were made on a quarterly basis, these bonds were not guaranteed (clean base), and had received an idAA rating rating from PEFINDO.

He said that all proceeds from the bond issuance would be focused on refinancing projects that meet the sustainability criteria.

Meanwhile, the project includes the Green Projects sector such as renewable energy, energy efficiency, and environmentally friendly transportation; Social Projects such as education and health infrastructure; Blue Projects such as sustainable maritime transportation; as well as Orange Projects targeting gender equality and empowerment of vulnerable groups.

Reynaldi said that his party ensures that the entire process of selecting and evaluating the project takes into account aspects of financial feasibility, as well as environmental, social, and governance (ESG) risks so that it can ensure effective use of funds and in accordance with sustainability goals.

"Prospective investors need not worry, because we have an internal mechanism that guarantees accountability and effectiveness of using funds," he concluded.