IFC Home
Creating Opportunity Where It's Needed Most

IFC Provides Innovative Credit Guarantee to Strengthen Indonesian Capital Markets, Green Finance


In Hong Kong
Hannfried von Hindenburg
Phone:+852 2509 8115
Email: hvonhindenburg@ifc.org

In Jakarta:
Agussurja Widjaja (PT Ciputra Residence)
Phone: +6221 29885858
E-mail: aguswdj@ciputra.com


Jakarta, Indonesia, April 3, 2014—IFC, a member of the World Bank Group, has partnered with PT Ciputra Residence, one of Indonesia’s leading residential property developers, to provide the first partial credit guarantee for a local bond issue in the domestic capital markets. This is also IFC’s first investment in green buildings in Indonesia.

IFC provided a 20 percent guarantee for a 500 billion Indonesian rupiah (approximately $44 million) bond offering by PT Ciputra Residence, a subsidiary of PT Ciputra Development Tbk. IFC’s guarantee elevated the bonds’ rating by Fitch Ratings Indonesia from A- to A, attracting a broader base of institutional investors. The bonds, issued with tenors of three, five, and seven years, were more than two times oversubscribed. They are listed on the Indonesia Stock Exchange.  

“This new source of financing will support our efforts to meet the population’s growing demand for housing in Indonesia, while also contributing to job creation and economic growth,” said  Budiarsa Sastrawinata, President Director of Ciputra Residence. “The guarantee from IFC also raises our company’s credit profile and enhances our visibility in the marketplace.”

With over 14 projects in various stages of development  throughout Java, Sumatra and Kalimantan, Ciputra Residence focuses on creating sustainable property developments that balance people’s needs for housing, community, and related services. The company has committed to apply IFC’s green building standards at several of its residential and commercial development projects.

“Investments supporting green buildings provide an opportunity to reduce greenhouse-gas emissions and address the important issue of climate change,” said Sarvesh Suri, IFC Country Manager for Indonesia. “IFC is helping Indonesia to develop its property sector in a sustainable manner through the establishment of green building codes for water and energy efficiency, and by providing financing to companies adopting these green standards.”

IFC uses structured finance products to provide financing that would not otherwise be readily available to the private sector in emerging markets, with an emphasis on providing long-term local-currency solutions and access to local capital markets. Over the years, IFC has provided over $10 billion in local-currency finance through partial credit guarantees, risk-sharing facilities, securitized structures, and other products.


About PT Ciputra Residence
PT Ciputra Residence, a subsidiary of PT Ciputra Development Tbk, is an Indonesian real estate development company established in 1989.  Its main focus is in integrated large-scale residential projects with various supporting commercial and public facilities.  Backed by its diversified geographical footprint, a highly experienced management team and its focus on quality and integrity, PT Ciputra Residence is well-positioned to continue its success in this fast-growing Indonesian real estate market. For more information, visit www.ciputraresidence.com.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.

Stay Connected
www.ifc.org/eastasia
www.twitter.com/IFC_EAP
www.facebook.com/IFCindonesia
www.facebook.com/IFCwbg
www.youtube.com/IFCvideocasts  
www.ifc.org/SocialMediaIndex