Environmental Finance's Bond Awards 2022

Sustainability bond of the year - Financial institution: Indonesia Infrastructure Finance

Indonesia Infrastructure Finance (IIF) issued an $150 million sustainability bond to champion ESG values in infrastructure financing in Indonesia.

They were the first-ever sustainability notes issued by an Indonesian non-banking infrastructure financial institution, and were 2.6 times oversubscribed.

Over 70% of the issuance was distributed to Asia with the remaining going to the EMEA region.

Its proceeds were used for green and social projects, which include renewable energy, clean transportation, access to essential houses, affordable housing and food security.

Sustainalytics assessed that the bond proceeds will lead to positive environmental and social impacts that advance the UN Sustainable Development Goals.

The coupon of 1.5% and the yield of 1.75% were the lowest-ever for a fixed rate five-year offering by an Indonesia company.

Established in 2010 by the Indonesian government, the IIF provides infrastructure financing and advisory services. The bond is part of its Infrastructure Finance Sustainable Financing Framework, which uses sustainability debt instruments to fund projects that create positive social and environmental outcomes.

The Environmental Finance Bond Awards judges were impressed that it "focused on the most urgent needs of Indonesia" and is "an excellent example for addressing social issues with an international standard framework".

The judges said the bond "can also contribute to addressing the vast financing needs for infrastructure development".

Deal Highlights

Issuer: Indonesia Infrastructure Finance
Size: $150 million
Maturity: 2026
Coupon: 1.5000%
Use of Proceeds: Renewable energy, clean transportation, affordable housing, food security
Lead Manager: Barclays Bank; BNP Paribas; Citigroup; Mandiri Securities
Other highlights/notable features: First ever sustainability notes issued by an Indonesian non-banking infrastructure financial institution