financing possibilities for pv power plant project in...
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A LEADING CATALYST IN FACILITATING INDONESIA’S INFRASTRUCTURE DEVELOPMENT
Financing Possibilities
for PV Power Plant
Project in Indonesia
Jakarta, 5 May 2014
Edwin Syahruzad Head of Financing & Investment
PT Sarana Multi Infrastruktur (Persero)
1
GIZ – EKONID Business Forum
PT Sarana Multi Infrastruktur (Persero)
2
Who we are
PT Sarana Multi Infrastruktur (Persero) (“SMI”) was
established on February 26, 2009 with a purpose to
become a catalyst for accelerating infrastructure
development in Indonesia
Ownership :
100% owned by the Government of Indonesia
Vision:
“A leading catalyst in the acceleration of the National
Infrastructure Development Program”
Mission:
1. To become a strategic partner to the government in
promoting and accelerating infrastructure
development in Indonesia.
2. To establish synergy with third parties, e.g. private
institutions, banking sector, local government, state-
owned enterprises, or multilateral organizations in
order to increase the capacity of infrastructure fund
Our services
1 We provide Commercial Financing
2 We provide Advisory Services
Promoter
Funding
Senior Term
Loan Equity
Take Out
Financing
Subordinated
Loan Refinancing
Working
Capital Loan
Mezzanine
Bridge Loan
Financial & Investment Advisory Services
Transaction Advisory Services
Training & Capacity Building
3 We provide PPP Project
Preparation Services
Project Development Financing
Advisory to Contracting/ Tendering Agencies
Limited Capacity Building
Water Supply
Toll Road & Bridges
Transportation
Oil & Gas
Telecommunications
Waste Water & Waste
Management
Electricity
Irrigation & Waterway
PT Sarana Multi Infrastruktur (Persero)
3
Our focus sectors Our three business pillars
1 2 3
Commercial
Financing
• Flexible financing
• Complementary to
banks
• Syndication Loan
or club deal
arrangement
Advisory
• Financial &
Investment
Advisory Services
• Transaction
Advisory Services
• Training &
Capacity Building
Project Preparation
• Project
Development
Financing
• Advisory to
contracting/
tendering agencies
• Limited capacity
building
Vision:
A leading catalyst in the acceleration of
the National Infrastructure Development Program
SMI Financing Commitment – Trend Overtime
Total Project Cost has been financed is IDR 39 Trilion
Financing performance, 2009 – YTD March 2014
Sector Portfolio (IDR Billion)
(IDR Billion)
49 175 525
1,196
3,086 3,298
125 400
1,158
2,221
4,477 4,502
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2009 2010 2011 2012 2013 YTD March2014
Outstanding
Commitment
376 2,079
1,287
17,993
17,165 500 39,399
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2009 2010 2011 2012 2013 2014 TotalProjectCost
Electricity 38%
Transportation 15%
Telecommunication 12%
Oil and Gas 12%
Road 11%
Water Supply 10%
Irrigation & Waterway
2%
PT SMI Cooperations in Developing Indonesia Infrastructure
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Industrial Decisions Inc (IDI)
As a Mezzanine
Investor of Lubuk
Gadang Mini Hydro
Power Plan
ANZ Panin Bank
As a cofinance partner
of LPG terminal project
at Semarang Port,
Central Java
Maybank Shariah
As a cofinance partner
of FSO(Floating
Storage Offloading)
terminal project in
Natuna Island, Riau
Islands
UOB Bank
As a cofinance partner
of Mini Hydro Power
Plant Project in
Bengkulu
TA ADB - Bappenas
Providing assistance for
Municipal Solid Waste
Management Project in
Batam with ADB-
Bappenas
UNDP
Scooping cooperation
for developing
renewable energy
projects (e,g: wind
power project)
CDIA
Mode of transportation
developmnet
cooperation in
Surabaya & partner for
GCA
BP Batam
Accelerating
infrastructure
development
cooperation in trading
area & Batam Bintan
Karimun (BBK) port
Co-Financing Project Preparation
Capital Market/ Infra Fund Management/ Other Cooperation
IDX
Establishing SMinfra18
index consisting of 18
infrastructure stocks
IFC
Study of the development
of infrastructure financing
instruments through long-
term capital market
JBIC
Financing of Green
Infrastructure Program
MCA Indonesia
Infrastructure Financing
for Green Prosperity
Programme
Singapore Cooperation
Enterprise
Capacity Building
cooperation and project
preparation assistance
for PPP
Kalimantan Railways
Pte.
Cooperation of coal
railway construction in
East Kalimantan
PPP Development Center
– Russia
Capacity building
cooperation and sharing
knowledge &
information
BCA (MLA), BCA, Bank
DKI, ICBC, Panin & BJB
(LU) Financing Syndication
for construction
Cilkampek-Palimanan
Toll Road
Standard Chartered Bank
As a cofinance partner of
power plant &
FPSO (Floating
Production & Storage
Offloading) project
Bank of Tokyo Mitsubishi UFJ
Capacity building
cooperation and project
infrastructure financing
Introduction to PV Project Finance
Parties Involved
Project Financing : Time Frame
Project Financing : Financial Parameter
Project Financing : Equity Potential Investors
Project Financing : Maximum Debt Capacity
Project Financing : Requirements
Project Financing : Risks
Special Notes To PV Project Finance
Financing is a Challenge in New Market • Lack of empirical evidence • Specialist Analysts in Banks are initially lacking • Currency and Country Specific Risks are often higher • Local Investors also lack of expertise initially • Equity Ratio needs to be higher than common practice • Developers are often under capitalized or under estimating
complexities
Sound Assistance and Advice can improve chances of success
THANK YOU FOR YOUR
KIND ATTENTION Disclaimer
All information presented were taken from multiple sources and
considered as true by the time they were written to the knowledge of
PT Sarana Multi Infrastruktur (Persero). PT Sarana Multi
Infrastruktur (Persero) can not be held responsible from any
inacuracy contained in the material. PT SMI follows all internal and
external guidelines and regulations that govern the evaluation
process on determining the financing feasibility of an infrastructure
project. Every decision to finance or not to finance a project is
therefore based on a responsible and thorough due diligence
process.
Any complaint in the process of financing irregularities can be
submitted to:
Ms. Astried Swastika
Corporate Secretary PT SMI
Tel : +62 21 5785 1499
Fax : +62 21 5785 4298
Email : [email protected]
Public complaints on PT SMI service will be kept strictly confidential
and handled by a special committee to ensure that complaints are
addressed appropriately.
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