Heaptalk, Jakarta — The Indonesia Investment Authority (INA) and Allianz Global Investors (AllianzGI) have established a partnership to provide customized credit services for Indonesian businesses with a total annual revenue of up to US$200 million.
The credit disbursement will prioritize investments that align with the country’s critical infrastructure needs and support its ongoing energy transition. AllianzGI’s contribution will at least match or align with INA’s investment in each joint investment.
This collaboration is expected to facilitate joint investments through a hybrid capital services scheme, an innovative financing method that blends various financial instruments to meet different investment needs. This funding facility responds to the growing demand for innovative financing in Indonesia that cannot be met by conventional senior bank loans or traditional equity.
Creating a robust financial innovation framework
“This partnership represents a strategic alignment with one of the world’s foremost asset managers, based on our stringent screening strategy, to leverage AllianzGI’s extensive experience and resources alongside INA’s strategic mandates,” said Ridha Wirakusumah, INA CEO.
Ridha further stated that INA and AllianzGI’s initiative to deploy hybrid capital services aims to create a robust financial innovation framework that supports local enterprises’ sustainable growth. He added, “Together, we aim to enhance Indonesia’s investment landscape, ensuring each venture not only supports local economic growth but also achieves optimal risk-adjusted returns.”
Sumit Bhandari, Lead Portfolio Manager of Asia Private Credit at Allianz Global Investors, said that Indonesia’s growth, especially in infrastructure and energy transition, aligns closely with their strategic priorities. “We are excited to support this partnership, focused on delivering tailored credit solutions to growing middle-market companies, driving sustainable development, and contributing to Indonesia’s long-term economic goals,” said Sumit.
AllianzGI is a global asset management firm with €555 billion in assets under management (AUM) as of 30 June 2024, including over €90 billion allocated to private market assets. Over €50 billion is in infrastructure, making AllianzGI one of the largest global infrastructure investors.
Through this collaboration, INA and AllianzGI are committed to developing sustainable investments that provide long-term value and support economic growth. The partnership highlights both organizations’ dedication to leveraging their expertise to identify and capitalize on new opportunities in Indonesia, reflecting their shared goals to impact both local and international investment landscapes positively.
