Bahana TCW Investment issues an infrastructure limited mutual fund (LMF) in the field of ports and toll roads to support the financing of infrastructure projects. It is offered to a number of institutional investors.
Soni Wibowo, Investment Director of Bahana TCW Investment, said the company issued Port LMF with a value of USD 35 million or approximately IDR 465 billion. “Proceeds will be used to acquire the Port of Tanjung Priok area to be revitalized,” said Soni. It is offered to 50 institutional investors.
Bahana TCW is planning to issue toll road LMF in 2018 with asset under management (AUM) target of IDR 5 trillion. Mutual fund products based on infrastructure projects are expected to get funds from the capital market. “Infrastructure development can continue and investors also have various investment alternatives,” said Soni.
Alternative financing for infrastructure projects is necessary due to insufficient state budget to support the planned projects. Other funding sources from the private sector, banks, and capital markets are required to make these projects work. In addition to Infrastructure LMF, securitization and Infrastructure Investment Fund
(DINFRA) become the solution for the funding needs.
Last week, Jasa Marga Tbk (JSMR) has listed JSMR01 Asset Backed Securities Collective Investment Contract (KIK EBA) which uses future revenue from Jagorawi Toll as its underlying asset. Budi Hikmat, Director of Investor Relations and Chief Economist of Bahana TCW, said the concept of securitization has been around since the 1970s but has not been fully utilized. In the future, the concept of securitization can be applied to assets such as accounts receivable and cash flow, credit card bills, electricity bills, motor vehicle bills, and insurance premium bills. (*)