State-owned Indonesia Infrastructure Finance has received a capital injection from Sumitomo Mitsui Banking Corporation to help accelerate project development in country, the former said in a statement on Tuesday.
SMBC, a Japanese firm, acquired 14.9 percent of IIF shares in a deal that boosted the Indonesian company’s capital to about $200 million from $160 million previously. The deal was signed on Monday.
The news came after the Japanese government gave assurances on Monday over its commitment to help Indonesia build the country’s first super express train, from Jakarta to Bandung.
“With strong support from SMBC’s financial capacity and technical know-how in project financing, we are confident we can carry out our mission to accelerate infrastructure development in Indonesia,” IIF president director and chief executive Kartiko Wirjoatmodjo said.
This year, IIF aims to finance projects worth $170 million in five main sectors: power plants, toll roads, drinking water, ports and telecommunications.
SMBC said in a separate statement on Monday that it would continue to support its clients, who are focusing on Indonesian infrastructure projects “through close cooperation with IIF.”
IIF was established on Jan. 15, 2010, through state-run holding company Sarana Multi Infrastructure, with several multinational lenders as shareholders.
At the time, SMI injected Rp 600 billion ($65.4 million) into the company while other lenders ponied up as well. The Asian Development Bank contributed Rp 400 billion, the World Bank added Rp 400 billion and Germany’s Deutsche Investitions- und Entwicklungsgesellschaft (DEG) put up Rp 200 billion.
IIF is now 34.3 percent owned by SMI, 16.9 percent by the World Bank, 16.9 percent by ADB and 16.9 percent by DEG.
IIF also received a subordinated loan from the World Bank and ADB worth $200 million, which was channeled through the Indonesian government.