CGIF's Commitment To Support Bond Markets In Indonesia

Photo: Doc. CGIF

JAKARTA - The Trust fund from the Asian Development Bank (ADB), Credit Guarantee and Investment Facility or CGIF held an Appreciation Night which coincided with the Board of Directors meeting, on Tuesday, December 3, 2024. CGIF Vice President Operations Anuj Awasthi said the implementation of the Appreciation Night was a form of gratitude to all partners who had contributed to CGIF's success over the past 14 years.

Indonesia, according to Anuj Awasthi, as the country with the largest economy in ASEAN, has become a very important market for CGIF. This event is a forum for CGIF to appreciate the valuable contribution of stakeholders in Indonesia, including publishers, organizers, regulators, and market players.

"We hope that the implementation of the inaugural Appreciation Night in Jakarta data will continue to strengthen relations with our partners as well as reaffirm our commitment to this area. We also plan to be able to hold this Appreciation Night in other ASEAN+3 countries in the future, in order to deepen relations and collaboration with the local and regional financial communities," said Anuj Awasthi.

CGIF has played an important role in supporting Indonesia's economic growth and the development of its bond market. To date, CGIF has supported the issuance of bonds for more than 10 companies in Indonesia through its initial offering of shares in the local market in rupiah currency and the issuance of cross-border bonds.

"Recently, we succeeded in helping to guarantee the issuance of bonds in rupiah currency for PT Adhi Commuter Properti Tbk, PT Steel Pipe Industry of Indonesia Tbk, and PT Hartadinata Abadi Tbk. With our guarantee, the bonds were ranked AAA from PEFINDO and managed to attract domestic investors," explained Anuj Awasthi.

"We also contribute to accelerating market expansion. We facilitate the issuance of initial bonds by a number of companies such as PT Ketrosden Triamistra Tbk (Triasmitra) and assisting the issuance of cross-border bonds in Singapore Dollar currency by PT Astra Sedaya Finance and Erajaya Group," added Anuj Awasthi.

In terms of infrastructure financing, CGIF mobilizes bond issuance worth more than 180 million US dollars for infrastructure development, as did PT Professional Telekomunikasi Indonesia Tbk (Protelindo) and Triasmitra. For the development of the sukuk market, CGIF helped the issuance of sukuk by PT Polytama Propindo (Polytama).

"We also pioneered the issuance of thematic bonds, including the initial Sustainable Bonds in the Rupiah currency by PT Steel Pipe Industry of Indonesia Tbk (SPINDO). We help expand the investor portfolio and extend the tenor on almost all of our transactions in Indonesia. We are also actively involved in education about the bond market in Indonesia. This year alone, we participated in 7 conferences and seminars to increase awareness and understanding of the market," said Anuj Awasthi.

Deputy CEO/Chief Risk Officer of CGIF Mitsuhiro Yamawaki said, since its founding in 2010, CGIF's support for the development of the bond market in ASEAN has created significant progress. A number of major CGIF achievements include capital mobilization where CGIF has helped bond issuers access funding sources and issued bonds worth more than 3.8 billion US dollars across the ASEAN+3 region. In addition, CGIF supports novice bond issuers.

"We have helped 53 percent of our partners enter the capital market as a new source of funding through the issuance of their initial bonds. We are also deepening the market with CGIF guarantee services enabling our partner companies to extend tenors, diversify investor bases, and access more capital sources," said Mitsuhiro.

Not only that, CGIF has encouraged regional integration by facilitating the issuance of cross-border bonds with a value of up to 1.48 billion US dollars, which contributes to regional financial integration and capital flows. CGIF also encourages infrastructure development by having helped partners to be able to obtain total capital worth more than 1.2 billion US dollars to support critical infrastructure projects across the region.

"We, supporting the border country market (front market), We have helped provide 277 million US dollars in funding to help the developing country market, unlock its growth potential. We also support the sustainable financial concept. We have helped 11 thematic distributions worth a total of 665 million US dollars, including Indonesia's first sustainable bonds with SPINDO, which demonstrates our commitment to sustainable development," said Mitsuhiro.