BRI Reaffirms its Position as the Market Leader in ESG Companies in Indonesia by Issuing a Green Bond Worth IDR 5 Billion
Bank BRI has reiterated its commitment to long-term financing in Indonesia by issuing the Sustainable Environmental Bonds with a target of IDR 15 billion and a total issuance of IDR 5 billion for ESG (Environment, Social, and Governance) activities.
The fund will be used in line with POJK 60/2017 on Green Bond Issuance and Requirements by allocating at least 70% to business operations that meet the criteria for Environmentally Friendly Business Activities (KUBL).
The initial offering period of listing on the Indonesian Stock Exchange from June 14 to July 14 has PT BRI Danareksa Sekuritas, PT Bahana Sekuritas, PT BCA Sekuritas, PT BNI Sekuritas, PT Indo Premier Sekuritas, and PT Mandiri Sekuritas as guarantors for the Green Bond issuance.
Sunarso, President Director of BRI, said:
"The guarantee of the Sustainable Environmental-Friendly Bonds I Phase I Year 2022 is a Clean Basis with a tenor of 370 days, 3 years, and 5 years, and an undetermined interest rate to be paid quarterly according to the 30/360 calculation. PT Pemeringkat Efek Indonesia (Pefindo) has given an idAAA rating on BRI's Green Bond."
Renewable energy, pollution control, natural resource management, land and water biodiversity conservation, environmentally friendly transportation, climate change adaptation, and other environmentally friendly business activities are among the KUBL sectors targeted by BRI's Sustainable Environmental-Friendly Bonds.
"The issue of climate change and its impacts have attracted many companies' attention globally. The banking industry now also pays attention to the ESG factors for sustainable finance," added Sunarso.
BRI is also committed to the Sustainable Finance Roadmap's goal of preserving and developing environmental sustainability, as indicated by an increase in loan proportions for ESG activities.
BRI's fund for ESG initiatives reached IDR 639.9 billion, or 65.6 per cent of the total loan, in March 2022, up 13.4 per cent from IDR 564 billion, or 62.9 per cent of the total loan, the previous year.
"Through the Green Bond issuance, BRI has further strengthened its position as the market leader amongst ESG companies in Indonesia. Since the MSME segment is the main driver of Indonesia's economic growth, it is crucial to educate MSME actors about ESG to ensure their businesses' sustainability," concluded Sunarso.
Source: PRNewswire
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