JAKARTA - PT Sarana Multi Infrastruktur (Persero) or PT SMI has successfully set the issue price of an international bond worth 300 million US dollars with a 5-year tenor in the form of senior unsecured fixed rate notes.
This issuance is a momentum for PT SMI to return to the international bond market denominated in US dollars after the last issuance in 2021.
The transaction recorded the most competitive spread ever achieved by Indonesian Non-Bank Financial Institutions for a 5-year tenor. This achievement also strengthens PT SMI's position as an institution with superior credit quality at the regional level.
This bond was issued through PT SMI's Euro Medium Term Note (EMTN) Program worth 2 billion US dollars and obtained an investment rating of Baa2 from Moody's and BBB from Fitch Ratings.
On May 6, 2026, PT SMI officially announced the transaction mandate for the planned issuance of senior unsecured bonds denominated in US dollars with a tenor of 5 years in the Reg S (Cat 1) format.
On the same day, PT SMI held a series of virtual meetings with selected institutional investors in Asia and Europe, and the activity received a positive response and strong investment interest from the beginning.
In line with the high enthusiasm of investors, the initial price guidance was announced at a range of 5.45 percent at the opening of the Asian market on May 7, 2026.
The demand from investors for this bond was very high, namely the orderbook that was formed was large and well diversified, so that PT SMI was able to significantly tighten the price.
The final price guidance was then set at 5.10 percent, and at the close of the Asian session, the bonds were successfully issued with a yield of 5.10 percent, or experienced a tightening of 35 basis points compared to the initial price guidance. This reflects the high level of investor confidence in PT SMI.
The final orderbook closed with a total demand of more than US$2.2 billion from 119 investors, equivalent to an oversubscription of 7.3 times the issuance target of US$300 million.
Geographically, Asian investors dominate the allocation of 87 percent, while the EMEA region accounts for 13 percent. Based on the type of investor, asset managers and fund managers are the largest group with a share of 74 percent, followed by central banks, insurance companies, and pension funds of 14 percent, the banking sector of 10 percent, and private banks and other investors of 2 percent.
This diverse and high-quality investor composition shows the strong and continued confidence of global investors in PT SMI, as well as the prospects for the growth of infrastructure and the Indonesian economy in the long term.
In this transaction, DBS Bank Ltd. acted as Sole Global Coordinator. Meanwhile, DBS Bank Ltd., BNI Securities, Deutsche Bank, Mizuho, MUFG, and Standard Chartered Bank were entrusted as Joint Bookrunners and Joint Lead Managers.
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