PEFINDO has assigned its “idAAA” rating for PT Indonesia Infrastructure Finance

(November 23, 2023)--PEFINDO has assigned its “idAAA” rating for PT Indonesia Infrastructure Finance (IIF)’s proposed Shelf Registration Bond II with a maximum issuance amount of IDR3.0 trillion. At the same time, PEFINDO has also affirmed its “idAAA” ratings for IIF and its outstanding bonds. The outlook for the corporate credit rating is “stable”. The corporate rating reflects IIF’s very strong support from its shareholders. The rating is not driven by its standalone credit profile, which reflects its strong presence in infrastructure financing segment with growing demand, very strong liquidity and financial flexibility, above average capitalization profile, concentrated financing profile, as well as limited number of feasible infrastructure projects.

The rating may be lowered if there is a material reduction in support from its shareholders, which can be indicated by their declining ownership and control.

IIF was established on January 15, 2010, as a non-bank financial institution focusing on investing in commercially feasible infrastructure projects by implementing international standards in social and environmental aspects. It provides long-term, fund-based products, such as senior loans, mezzanine finance, and equity participations, in addition to non-fund-based products, such as guarantees and fee-based services. It had 135 employees and one office as of June 30, 2023. Its shareholders consisted of PT Sarana Multi Infrastruktur (Persero) (SMI, 30.00%), International Finance Corporation (IFC, 19.99%), Asian Development Bank (ADB, 19.99%), Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG, 15.12%), and Sumitomo Mitsui Banking Corporation (SMBC, 14.90%). (ends)