smbc in infrastructure finance - worldbank.org story/japan/pdf... · smbc in infrastructure finance...

SMBC in Infrastructure Finance

Overview of PT Indonesia Infrastructure Finance In

ve

stme

nt

Ba

nkin

g

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)

2

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

3

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



2 State Bank of India 10,090.1 5.0

3 China Development Bank 8,312.0 4.1


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



2 Barclays 2,924.5 5.7

3 Deutsche Bank 2,061.2 4.0

4 Goldman Sachs & Co 2,003.8 3.9



7 Credit Suisse 1,936.4 3.8

8 Bank of America Merrill Lynch 1,832.6 3.6


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


1 China Development Bank 7,700.0 8.7




5 UniCredit 2,415.5 2.7


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.

4

Global Coverage

(Project Finance)

Marketing ： 46 officers

Credit ： 24 officers

(ECA & Advisory)


London


Paris


Amsterdam

Marketing ： 1 officer

Dusseldorf


Milan

Total

316 officers

(as of April 2014)

(Project Finance)



(ECA)


Tokyo


Seoul



Hong Kong


Credit (ind. Agency)： 15 officers

Singapore


Jakarta Marketing ： 12 officers


Sydney


Hanoi


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


Mexico City


Bogotá


São Paulo

Lima


Santiago



Toronto

5

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

6

PT Indonesia Infrastructure Finance (IIF)

7

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

8

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

9

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%

10

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

11

Thank you

12

smbc in infrastructure finance - worldbank.org story/japan/pdf... · smbc in infrastructure finance...

Documents