IFC provides $120m loan for LOGOS to develop logistics assets in Greater Jakarta

LOGOS Cikarang Logistics Park, West Java, Indonesia.

The International Finance Corporation (IFC), part of the World Bank group, said it will provide up to $120 million in debt financing for Australian logistics property group LOGOS to develop the latter’s two logistics assets in the Greater Jakarta area.

The investment will deliver modern and high-quality logistics infrastructure in Indonesia’s rapidly growing e-commerce market while supporting business expansion and promoting competitiveness in the country’s warehousing sector, IFC said in a joint statement.

The estates, LOGOS Cikarang Logistics Park and LOGOS KLOG Cibitung Logistics Hub, are expected to generate 1,000 jobs during the construction phase along with hundreds of indirect jobs created by potential tenants, including global third-party logistic firms and large e-commerce groups.

Both properties are targeting a Green Mark award certification and are designed to comply with IFC’s green-building standards, according to the statement. This will include a wide range of sustainability initiatives to reduce greenhouse gas emissions during construction and operation.

This is the first green loan with IFC that LOGOS has secured, said LOGOS managing director Stephen Hawkins.

“Sustainability is a key driver of our business and we are actively incorporating sustainable initiatives across all our projects and operations regionally. IFC’s green loan is an important part of this commitment and will support us in delivering these two modern, high-quality and sustainable logistics estates for the Indonesian market,” he added.

Indonesia’s e-commerce sector is projected to reach a size of $124 billion by 2025, according to the Southeast Asia digital economy report by Google, Temasek and Bain & Company. However, IFC said there was still “a critical infrastructure gap” in the country, posing challenges for retailers and e-commerce players due to Indonesia’s archipelagic geography and the fragmented and nascent logistics sector.

“IFC’s green investment, in sync with the government’s sustainability agenda, will help address a significant lack of adequate warehousing space in Indonesia, which is critical in the wake of an e-commerce boom amid the COVID-19 pandemic,” said Alfonso Garcia Mora, IFC vice president for Asia and Pacific.

Financing for the climate investing theme is becoming more mainstream. In Vietnam, where LOGOS announced its $350 million joint venture in August, IFC is providing a $212.5 million package for commercial lender VPBank to cover SME loans as well as climate-related projects.

Meanwhile, IFC has also committed to Zurich-based impact investor responsAbility Investments AG’s climate debt fund, which could reach as much as $200 million to focus investments on Sub-Saharan Africa and South and Southeast Asia.

Earlier this month, Australian private equity firm Adamantem Capital received commitments worth A$160 million ($118.5 million) from two government-owned funds for its second fund to drive emission reduction across its portfolio.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.