SMI draws strong demand for return to global bond market

By Ranuh Rafiani Putri

State infrastructure financier PT Sarana Multi Infrastruktur (Persero) (SMI) said on Tuesday that  it has returned to the international bond market with a U.S. dollar issuance under its EMTN program, attracting strong investor demand from Asia and Europe.

The company said orders exceeded $2.2 billion from 119 investors, or around 7.3 times the targeted issuance size of $300 million.

SMI said the strong demand enabled the company to tighten pricing significantly within less than 48 hours, with the final yield reduced to 5.10% from initial price guidance of 5.45%.

According to the company, the transaction achieved the tightest spread ever recorded for a five-year bond issued by an Indonesian non-bank financial institution.

Read also: SMI provides financing for Singkawang roads, bridges

The company said the high level of investor participation reflected international confidence in PT SMI as well as Indonesia’s long-term sustainable development prospects.

SMI last accessed the international U.S. dollar bond market in 2021.

The company said proceeds from the issuance would support its role as a development finance institution in financing infrastructure projects aimed at supporting economic growth and improving public welfare in Indonesia.

SMI operates under Indonesia’s Ministry of Finance and plays a strategic role in supporting government infrastructure development through project financing, advisory services and blended finance schemes.

Editing by Alexander Ginting