DBS: Success of SMI Bonds Signals Bright Prospects for National Infrastructure
Jakarta (ANTARA) - The financial conglomerate DBS Bank Indonesia assesses that the successful issuance of Infrastructure Retail Bonds (ORIS) by PT Sarana Multi Infrastruktur (Persero), an entity under the Ministry of Finance, valued at IDR 150 billion, reflects investor confidence and marks bright prospects for the national infrastructure sector.
Lim Chu Chong, President Director of DBS Bank Indonesia, stated in an official statement received in Jakarta on Tuesday that DBS’s partnership in the SMI bond issuance serves as both a financial solution and support for infrastructure development and Indonesia’s economic growth. SMI is a special mission vehicle under the Ministry of Finance focusing on infrastructure projects in Indonesia.
“This partnership provides comprehensive financial solutions and reflects a dedication to supporting infrastructure development and Indonesia’s economic growth through innovative financing solutions,” said Lim.
In the issuance of the Sustainable Sustainability Bond I Sarana Multi Infrastruktur Phase II Year 2026, marketed under the name Infrastructure Retail Bonds, PT DBS Vickers Sekuritas Indonesia (DBSVI) acted as one of the main underwriters and coordinated the entire issuance process, while PT Bank DBS Indonesia (DBSI) acted as a marketing partner for securities trading agents.
According to DBS, the success of this bond issuance demonstrates increasing investor interest in fixed-income investment instruments, which possess strong fundamentals and contribute directly to national development. Lim added that the success of the SMI retail bond offering serves as a positive indicator for the prospects of the national infrastructure sector amidst ongoing financial market dynamics.
Meanwhile, Andreas Oen, Ad-interim President Director of PT DBS Vickers Sekuritas Indonesia, stated that high investor interest in the bonds shows market confidence in SMI’s fundamentals and the long-term growth potential of Indonesia’s infrastructure sector. “The high investor interest in these bonds confirms the exemplary creditworthiness of PT SMI and demonstrates the promising prospects for Indonesia’s infrastructure sector,” said Andreas.
SMI issued the Sustainable Sustainability Bond I Phase II Year 2026, marketed as the PT SMI Infrastructure Retail Bond (ORIS), at the end of the first quarter of 2024. The instrument received an idAAA rating from Pefindo, reflecting the highest credit quality in the domestic market. The retail bond issuance also provides opportunities for individual investors to participate in the financing of national infrastructure projects through fixed-income investment instruments.
In addition to the domestic retail bond issuance, SMI also issued global bonds worth USD 300 million, with DBS Bank Ltd acting as the Sole Global Coordinator. These bonds received a Baa2 rating from Moody’s and a BBB rating from Fitch, garnering a positive response from international investors.