Obtained a Syndicated Loan Facility of USD 700 million, PT SMI Proves Infrastructure as an Asset Class

JAKARTA,Indonesia,Sept. 10,2020 --PT Sarana Multi Infrastruktur (Persero) (PT SMI) as aSpecial Mission Vehicle (SMV) under the coordination of the Ministry of Finance (MoF) signed a Syndicated Loan Agreement worth USD 700 million (IDR 10.26 trillion). This facilityis the largest offshore syndicated loan obtained by PT SMI from banking partners,originating fromIndonesia,Singapore,Japan,Hong Kong,Taiwan,and South Korea. The process of this facility was supported by several Mandated Lead Arrangers & Bookrunners (MLAB) namelyMUFG Bank Ltd,United Overseas Bank (UOB),Standard Chartered Bank,Bank of China (Hong Kong),andCTBC Bank Co.,Ltd..This loan is the second syndicated loan obtained by PT SMI,after the first amounting to USD 175 million obtained in 2014. The signing ceremony of the syndicated loan agreement was attended by the President Director of PT SMI,Edwin Syahruzad,together with MLAB representatives at the Kempinski Hotel,Jakarta (10/09/2020) which was also witnessed virtually by the syndicationand journalists.

Left to Right: 1. Iwan Satawidinata-President Director,PT Bank CTBC Indonesia; 2. Harapman Kasan - Wholesale Banking Director,PT Bank UOB Indonesia; 3. Pancaran Affendi - Managing Director,Head of Global Corporate and Institutional - MUFG Bank Ltd. Jakarta Branch; 4. Edwin Syahruzad - CEO PT Sarana Multi Infrastruktur (Persero); 5. Donald Sianipar - Global Banking Head,Standard Chartered Bank Jakarta Branch; 6. Darwin Trisna Djajawinata – CFO PT Sarana Multi Infrastruktur (Persero); 7. Handojo Wibawanto S - Corporate Marketing Director,Bank of China (Hong Kong) Ltd.

In his remarks,Edwin Syahruzad stated,"Wehighly appreciate the trust given by our foreign banking partners and all parties working for the implementation of the largest syndicated loan agreement ever recorded by this institution. This agreement is a reflection that PT SMI has succeeded in becoming an entity with a good reputation. This agreement also signals that the infrastructure development sector has resilience,and will therefore continue to be a strategic sector in the country,despite the threat of an economic recession. We hope that the sustainability of infrastructure development can be a trigger to rebuild the economy in the recovery phase from the pandemic."

The initial target of the loan was USD 500 million with a greenshoe option of USD 200 million. With high demand,PT SMI managed to get a total syndicated loan worth USD 700 million despite the economic downturn due to the COVID-19 pandemic. The proceed of the syndicated loan are intended to be used forrefinancing and fulfilling new financing needs for the infrastructure projects,thusit will strengthen the asset liability managementof the company. Various projects that have been facilitated by PT SMI from various sectors have createda large multiplier effect. Until July 2020,PT SMI has produced a multiplier effect of up to 6.79 times the total commitment and 22.22 times the paid-up capital. This is in line with PT SMI's vision to support the acceleration of infrastructure developmentin Indonesia with creative and innovative financing facilities that provide socio-economic benefits to the people of Indonesia.

In the current economic situation,PT SMI has proven its performance in attracting foreign investors into the infrastructure sector. With total assets of IDR 79.8trillion and total equity of IDR 37 trillion,the total project value financed by PT SMI until July 2020 has reached IDR 678.16trillion with a total commitment of IDR 99.9 trillion and a total outstanding of IDR 65.8 trillion. This proves that the infrastructure sector is a highly-demanded asset class.

PT SMI has raisedfunds from various sources originating from the capital market,banking,and international institutions. Since 2014,PT SMI has been actively issuing bonds withgood response and has beenoversubscribedseveral times,both bylocal and foreign investors. With total bonds issued reaching IDR 29 trillion,PT SMI is the fourth-largest issuer with outstanding corporate bonds in Indonesia. Of thetotal outstanding bonds of IDR 23 trillion,20% of them are owned by foreign investors,whichonceagain confirms the high confidence of investorsinIndonesian,especially inPT SMIand infrastructure sector.

The trust given by the investors forPT SMI strengthened bythe corporateratings given by local and international rating agencies. With PT SMI's idAAA (stable outlook) rating,PT Pemeringkat Efek Indonesia (PEFINDO) assessed that the impact of COVID-19 on the infrastructure financing industry is moderate. In line with the previous period,PT SMI consistently gained BBB and AAA (idn) ratings at the international level (stable outlook) from Fitch Ratingsin May 2020.This proves that PT SMI has a strong ability compared to other Indonesian obligors to meet its long-term financial commitments,and always strives to maintain good performance and continues to innovate in increasing its financing capacity.

About PT Sarana Multi Infrastruktur (Persero) ("PT SMI")

PT Sarana Multi Infrastruktur (Persero) ("PT SMI") was established on February 26,2009 asa State-Owned Enterprise under the coordination of the Ministry of Finance in the form of a Non-Bank Financial Institution (LKBB),with a role and mandate as a catalyst for the acceleration of infrastructure development.

PT SMI has various functions and unique products/features to support the acceleration of infrastructure development which not only functions as an infrastructure financing but also as an enabler through the implementation of aPublic Private Partnership (PPP) scheme which includes various financial institutions,both private and multilateral. PT SMI actively supports the PPP implementation and encourages the acceleration of infrastructure development in the regions through regional loan products.

PT SMI has three business pillars,namely (1) Fundingand Investment,financing for infrastructure projects,(2) ConsultancyServices,solutions to the needs of professionals and experts intheinfrastructuresector,and (3) Project Development,assistance forthe Person in Charge of Cooperation Projects (PJPK) in preparing infrastructure projects.

For further information please contact:

Ramona Harimurti

Head of Corporate Secretary

Dian Rufal

Pjs. Head of Communications & CSR

PT Sarana Multi Infrastruktur (Persero)

Tel: +6221 8082 5288

Fax: +6221 8082 5258

Email:corporatesecretary@ptsmi.co.id

www.ptsmi.co.id

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