SINGAPORE - United Overseas Bank (UOB) has signed a memorandum of understanding with an Indonesian state-owned infrastructure financing company, PT Sarana Multi Infrastruktur (Persero) (SMI), to support infrastructure development initiatives in Indonesia, the bank said on Friday (March 23).

Both parties will collaborate on infrastructure financing, corporate financing and project financing for national and provincial infrastructure projects.

UOB and SMI first struck a partnership in 2013 to provide term loans for infrastructure projects such as toll roads and power plants.

Founded in 2009, PT SMI works with local and international financial institutions through public-private partnerships (PPPs) to provide infrastructure financing in Indonesia.

Said Emma Sri Martini, president director of PT SMI: "Both parties will collaborate in supporting Indonesia infrastructure project financing, and not limited to credit syndication and mezzanine financing. PT SMI will support and work with UOB in project preparation and infrastructure advisory services in going beyond the scope of government and company collaboration.

"To fulfil Indonesia's infrastructure development fund, PT SMI will also collaborate with UOB in equity investment and infrastructure fund management, especially in developing financing tools including but not limited to potential credible international investor identification, such as sovereign wealth fund or pension fund."

Lim Lay Wah, UOB's managing director and head of Global Financial Institutions Group, said: "We believe that PPPs are one way to provide the resources and expertise needed for the country to meet its demand for infrastructure development. UOB's MOU with PT SMI is testament to the group's commitment to Indonesia and to sharing our industry knowledge and experience in facilitating infrastructure projects across the region."

UOB shares were trading 80 cents lower at S$27.36 as at 1.12pm on Friday.