Project Details
Project
PT SMI Sustainable Funding Framework Second-Party Opinion (2025)
Client
PT Sarana Multi Infrastruktur (Persero)
Project Type
Sustainability Bond/Loan
Industry Group
Financials
Use of Proceeds
Renewable energy; Energy efficiency; Pollution prevention and control; Natural resources/land use management; Clean transport; Water/waste water management; Green buildings; Affordable basic infrastructure; Access to essential services; Affordable housing; Food security; Socio-economic advancement;
Location
Indonesia
Evaluation Date
Mar 2025
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 5, 6, 7, 8, 9, 10 11 and 12.
PROJECT EVALUATION AND SELECTION
Representatives from the Financing Division, Financing Risk Evaluation Division, Legal Division, Finance and Investor Relations Division, and Environmental and Social Evaluation Division at PT SMI will be responsible for the evaluation and selection of projects in line with the Framework’s eligibility criteria. The Environmental and Social Evaluation Division will identify, assess and manage environmental and social risks associated with eligible projects. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
PT SMI’s Finance and Investor Relations Division, reporting to the Board of Directors, will be responsible for tracking and managing proceeds in line with its internal management system. PT SMI intends to allocate all proceeds within 24 months after receiving the funds. Pending full allocation, unallocated proceeds may be invested in cash, cash equivalents or marketable securities, in accordance with PT SMI’s cash management policies and exclusion criteria. This is in line with market practice.
REPORTING
PT SMI commits to report on allocation of proceeds in a sustainability report on its website on an annual basis until full allocation. Allocation reporting will include information such as a list of funded projects with brief descriptions and the final allocation of proceeds to eligible projects. In addition, PT SMI intends to report on relevant environmental or social impact metrics, where feasible. Sustainalytics considers the allocation and impact reporting commitments as aligned with market practice.