Post on 07-May-2020
SMBC in Infrastructure Finance
Overview of PT Indonesia Infrastructure Finance In
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22nd May 2014
Rajeev Kannan
General Manager, Project & Export Finance Department
Sumitomo Mitsui Banking Corporation
Member of Board of Commissioners of
PT Indonesia Infrastructure Finance
Awards : Global Bank of the Year 2012
SMBC is awarded as “Global Bank of the Year 2012” by PFI Magazine for 2012.
This is the 2nd time that SMBC won this award following “Global Bank of the Year 2008”.
Global Bank of the Year
Sumitomo Mitsui Banking Corporation
“Sumitomo Mitsui Banking Corporation (SMBC) has
picked up this year’s Project Finance International
Global Bank of the Year award for its wide range of
lead-arranging and advisory mandates across all
jurisdictions and asset classes. The bank booked a
healthy spread of assets and took part in a range of
innovative new deals, and advised on a decent range,
too.” (Source: PFI Yearbook 2013 Global Awards)
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Awards : Deal of the Year 2013
SMBC plays key roles on “Deal of the Year” projects awarded by the Infrastructure Journal.
Minera Antucoya Alder Hey Children’s
Health Park
Deal of the Year - Mining Deal of the Year – Overall &
Social Infrastructure
Winner Winner
London Array Offshore
Wind Farm OFTO
Deal of the Year -Renewable
Winner Chaglla Hydroelectric
Power Project
Deal of the Year - Power
Winner
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SMBC Project Finance Credentials – League Table 2013
Mandated Arrangers US$ (m) %
1 State Bank of India 10,090.1 15.9
2 Korea Development Bank 5,355.7 8.4
3 Mitsubishi UFJ Financial Group 3,196.5 5.0
4 Mizuho Financial 2,815.5 4.4
5 Westpac 2,787.9 4.4
6 NAB 2,739.4 4.3
7 CBA 2,696.1 4.2
8 Axis Bank 2,426.5 3.8
9 Sumitomo Mitsui Finl Grp Inc 2,222.3 3.5
10 ANZ 2,221.1 3.5
Mandated Arrangers US$ (m) %
1 Mitsubishi UFJ Financial Group 11,430.4 5.6
2 State Bank of India 10,090.1 5.0
3 China Development Bank 8,312.0 4.1
4 Sumitomo Mitsui Finl Grp Inc 7,923.8 3.9
5 Mizuho Financial Group 7,443.8 3.7
6 Korea Development Bank 5,659.1 2.8
7 Credit Agricole 5,105.6 2.5
8 Barclays 4,211.0 2.1
9 HSBC 4,192.2 2.1
10 ING 3,997.4 2.0
Global Mandated Lead Arranger
Mandated Arrangers US$ (m) %
1 Mitsubishi UFJ Financial Group 4,755.2 9.3
2 Barclays 2,924.5 5.7
3 Deutsche Bank 2,061.2 4.0
4 Goldman Sachs & Co 2,003.8 3.9
5 Sumitomo Mitsui Finl Grp Inc 1,974.0 3.8
6 Mizuho Financial 1,966.3 3.8
7 Credit Suisse 1,936.4 3.8
8 Bank of America Merrill Lynch 1,832.6 3.6
9 Credit Agricole 1,765.5 3.4
10 RBC Capital Markets 1,747.0 3.4
Americas Mandated Lead Arranger
EMEA Mandated Lead Arranger
Asia Pacific Mandated Lead Arranger
(Source): Thomson Reuters
Mandated Arrangers US$ (m) %
1 China Development Bank 7,700.0 8.7
2 Sumitomo Mitsui Finl Grp Inc 3,727.6 4.2
3 Mitsubishi UFJ Financial Group 3,478.8 3.9
4 Mizuho Financial 2,662.0 3.0
5 UniCredit 2,415.5 2.7
6 Credit Agricole 2,308.7 2.6
7 BNP Paribas 2,284.6 2.6
8 HSBC 2,246.4 2.5
9 Standard Chartered 2,095.6 2.4
10 Societe Generale 1,992.4 2.2
SMBC was ranked 4th as Global, 5th as Americas, 2nd as EMEA and 9th as Asia Pacific Mandated Arranger.
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Global Coverage
(Project Finance)
Marketing : 46 officers
Credit : 24 officers
(ECA & Advisory)
Marketing : 12 officers
London
Marketing : 7 officers
Paris
Marketing : 3 officers
Amsterdam
Marketing : 1 officer
Dusseldorf
Marketing : 3 officers
Milan
Total
316 officers
(as of April 2014)
(Project Finance)
Marketing : 16 officers
Credit : 15 officers
(ECA)
Marketing : 11 officers
Tokyo
Marketing : 9 officers
Seoul
Marketing : 3 officers
Credit : 3 officers
Hong Kong
Marketing : 32 officers
Credit (ind. Agency): 15 officers
Singapore
Marketing : 2 officers
Jakarta Marketing : 12 officers
Credit : 7 officers
Sydney
Marketing : 1 officer
Hanoi
Marketing : 1 officer
Bangkok
SMBC Capital India
Marketing :1 officers
New Delhi
Staff : 2 officers
Doha
(Project Finance)
Marketing / Credit : 54 officers
(ECA) :Marketing: 9 officers
New York
Marketing : 5 officers
Mexico City
Marketing : 5 officers
Bogotá
Marketing : 7 officers
São Paulo
Lima
Marketing : 2 officer
Santiago
Marketing : 3 officers
Marketing : 5 officers
Toronto
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SMBC’s Strategic Initiatives in Asia
• Significant funding needs for
infrastructure
• SMBC investment in IIF as
private sector investor
• In partnership with MoF
subsidiary and multilaterals.
• SMBC commitment is US$
30 million for 14.9% equity
interest
Indonesia
• Significant funding needs for
overseas infrastructure
investments by Singapore based
corporates
• Temasek has set up a project
finance company with SMBC,
DBS and SCB
• Long-term guarantee from the
Singapore Government
• SMBC investment in Clifford
Capital as the only bank selected
where Temasek is not a
shareholder
Singapore
• ~US$1.4 trillion required for
infrastructure by Year 2017
• SMBC has set up an
infrastructure fund together
with partners, Kotak Bank
and Brookfield AM
• US$250 million fund size
• SMBC commitment is US$ 30
million and has GP
economics
• Targets power and
infrastructure projects
India
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Confidential
Increased Government focus on the infrastructure sector
Government increases infrastructure spending allocation.. …in order to maximize economic growth
Source: Ministry of Finance, RAPBN Source: Central Bureau of Statistics & RAPBN, Bank Indonesia
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Confidential
IIF Profile
PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution under the Ministry of Finance of the
Republic of Indonesia, Regulation (PMK) No. 100/2009, professionally managed, with a focus on investing in
commercially feasible infrastructure projects.
Target Sectors
Transportation
infrastructure
Waste /
waste-water
infrastructure
Road
infrastructure
Telecommunication
and information
infrastructure
Irrigation
infrastructure
Electricity
infrastructure
Drinking water
infrastructure
Oil and gas
infrastructure
IIF’s Vision & Mission
To provide capital for infrastructure in Indonesia
and to work closely with Infrastructure sponsors,
the financial sector, and the Government of
Indonesia to accelerate the construction of well-
conceived, commercially viable infrastructure
projects.
To ensure investors’ needs are reflected in
contractual structures and concessions
To lead in offering a mix of long term
financing instruments appropriate for
infrastructure.
To work with Indonesia’s financial institutions
and other institutional investors to channel
the nation’s saving into the long term
development of Indonesia’s Infrastructure
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Confidential
Strong, established sponsors / shareholders
IIF is owned by SMI (100% ROI owned), IFC, ADB, DEG and SMBC.
ADB, IFC and DEG are all global multilateral institutions dedicated to promote development in developing countries and have debt rated
Aaa/AAA/AAA by Moody’s/S&P/Fitch. ADB and IFC in particular are backed by multiple sovereign states.
SMBC is a strong Japanese bank and is rated Aa3/A+/A- by Moody’s/S&P/Fitch.
Finally, through SMI, IIF is backed by the Government of the Republic of Indonesia, which has shown a commitment to promoting infrastructure
development in the country
33.88%
19.99% 19.99% 11.24% 14.90% 100.0%
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Confidential
Social & Environmental (S&E) Principles
International Performance Standards
To act as a catalyst in
financing public and private
initiatives for commercially
viable infrastructure projects
Long term financing
Project finance
capability
Leading expertise in
infrastructure
financing
Leading expertise in
PPP transaction
and project
financing
Financial advisory
capability
Advisory Business Investment Business
Expected Result Business Model
An increase in the infrastructure investment
and development
Increase the private sector’s participation in
equity and debt investment in infrastructure
Create a domino effect:
o Improve long-term debt market driven by
the increasing infrastructure investment
o Grow the financial institutions and
financial markets
Facilitate PPP’s growth
Raise the awareness and the capacity of
companies to implement S&E Principles
IIF is expected to spearhead and to become a leader in the development of infrastructure financing.
As Catalyst in Infrastructure Financing
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