Indonesian SOE secures sustainability-linked syndicated term loan facility of US$700 million

PT Sarana Multi Infrastruktur (PT SMI) has successfully obtained its first sustainability-linked syndicated term loan facility from a number of banking partners across geographies, including Indonesia, Singapore, Japan, Hong Kong, Taiwan and South Korea.

Specializing in infrastructure financing, PT SMI is a state-owned enterprise (SOE) whose entire capital is owned solely by the Republic of Indonesia under the Ministry of Finance. The firm aims at speeding up sustainable urbanization of Indonesia.

To mark the completion of transaction, PT SMI held a closing ceremony at Sahid Sudirman Center, Jakarta.

The syndicated term loan facility amounting to US$700 million aligns with the firm’s commitment to support sustainable infrastructure projects in Indonesia.

The transaction was supported by several Mandated Lead Arrangers & Bookrunners (MLABs), namely Bank of China (Hong Kong), CTBC Bank, DBS Bank, Mizuho Bank, MUFG Bank and United Overseas Bank (UOB).

With a target size of US$700 million, the strong market liquidity resulted in an oversubscription with aggregate commitments at c. US$1.80 billion. This syndicated loan is intended to fulfil financing needs primarily for sustainable infrastructure projects in Indonesia.

The loan features concrete performance targets that are in line with PT SMI’s commitment to ESG, including to grow the sustainability financing portfolio and to increase the number of employees undertaking ESG-related trainings.