Obligasi Berkelanjutan III Indonesia Infrastructure Finance Tahap II Tahun 2026

Rating: AAA(idn) (Fitch Ratings Indonesia, Stable)

Sovereign-Equalised Infrastructure Lender Returns With AAA(idn) Paper Across One-to-Five Years

PT Indonesia Infrastructure Finance (IIF) is a non-bank policy financing institution established in 2010 to fund commercially viable Indonesian infrastructure. It is 44.99% owned by PT Sarana Multi Infrastruktur (Persero), alongside IFC, ADB, DEG and SMBC, and holds IDR 15.0tn of assets with a drawn portfolio of IDR 9.8tn across telecommunications, power, water, roads and social infrastructure. FY2025 net interest income rose 37.7% to IDR 543.1bn and net income 51.2% to IDR 185.3bn.

Indicative Structure

Obligasi Berkelanjutan III Tahap II: up to IDR 2.0tn – Series A 370D 6.55%-7.35%, Series B 3Y 6.65%-7.50%, Series C 5Y 6.75%-7.70%
Clean basis (unsecured), quarterly coupon, bullet repayment.
Proceeds fund: refinancing and sustainable infrastructure projects.
PUB III target IDR 6.0tn; Tahap I placed IDR 432.6bn in July 2026, leaving IDR 5.57tn available.

Why This Deal

A credit equalised with the Republic. Fitch rates IIF BBB / AAA(idn), equal to the sovereign, and scores government support at 45 of 60 (‘Virtually Certain’). The state, through SMI, appoints directors, approves budgets and oversees debt planning. Pefindo affirmed its idAAA corporate rating in March 2026.
Strong capital absorbs a softer 1H2026. Net income fell to IDR 38.2bn in 1H2026 as client prepayments cut interest income by 20.2% and provisioning doubled. The balance sheet tells a different story: CAR of 56.79%, debt/equity of 3.21x, covenant gearing of 2.39x against a 10x limit, and cash and securities of IDR 4.8tn (32% of assets). Net NPF improved to 3.49%, and new commitments of IDR 2.5tn were three times the FY2025 total.
Curve-level carry at the top of the ranges. At 7.35% (370D), 7.50% (3Y) and 7.70% (5Y), the series pay 61-74bp over SBN and 26bp, 6bp and 6bp over the idAAA curve (7.09% / 7.44% / 7.64%), in line with IIF’s own secondary paper. July’s Tahap I cleared at 7.40%, 7.65% and 7.70%. With the Fed at 4.00% after its September hike and BI holding at 5.75% to steady the Rupiah, sovereign-equalised paper at curve levels is a defensive way to lock in carry. We recommend SUBSCRIBE.