A Green Step Forward
PT Bank Rakyat Indonesia (BRI) Persero Tbk. (IDX: BBRI) has taken a significant stride toward a greener future with the issuance of IDR 6 trillion Green Bonds for 2023. This substantial move aligns with BRI’s commitment to advancing sustainability and renewable energy projects in Indonesia.
Three Series of Green Bonds
BRI’s Green Bonds for 2023 come in three series, each tailored to different investment horizons: a 1-year series with a 6.10% coupon rate, a 2-year series with a 6.35% coupon rate, and a 3-year series with a 6.30% coupon rate. The issuance adheres to the fund usage framework established by the Financial Services Authority Regulation No. 60/POJK.04/2017.
Oversubscribed Success
During the book-building period, the 2023 Green Bonds Phase II attracted immense interest, with oversubscriptions reaching 2.66 times the initial offering. This resounding success reaffirms BRI’s position as Indonesia’s leading domestic green bonds issuer, building on its earlier achievement of issuing IDR 5 trillion in green bonds in 2022.
Funding a Sustainable Future
The proceeds from the Green Bonds issuance will primarily bolster initiatives in renewable energy, energy efficiency, pollution control, eco-friendly transportation, and sustainable land use projects. This underscores BRI’s unwavering commitment to fostering a Green Economy and Sustainable Principles. In addition to Green Bonds, BRI has previously issued Sustainable Bonds, Sustainable-Linked Loans, Medium-Term Notes, and Subordinated Debt.
An Environmental Focus
At least 70% of the raised funds will be directed towards environmentally responsible business activities, with the remaining portion channeled into Small and Medium-sized Enterprises (SME) financing. Moreover, the funds designated for environmentally responsible activities will also facilitate the refinancing of expiring green bonds in 2023.
A Vision of Sustainability
Agus Noorsanto, Director of Wholesale and Institutional Business of BRI, emphasized the bank’s commitment to generating value while concurrently enhancing societal well-being. This commitment aligns with BRI’s vision to be recognized as The Most Valuable Banking Group in Southeast Asia and The Champion of Financial Inclusion. BRI remains steadfast in supporting government initiatives related to Environmental Management and Climate Change Control.
Retail Investor Participation
Achmad Royadi, SEVP Treasury and Global Services at BRI highlighted that the Green Bonds issuance garnered interest from retail investors. This not only underscores BRI’s dedication to the government’s financial inclusion strategy but also demonstrates the relatively low risk associated with the bonds. Pefindo has accorded them an idAAA (Triple-A) rating, affirming BRI’s capability to meet its long-term financial obligations.
A Forward Timeline
The issuance of BRI’s Green Bonds Phase II in 2023 will follow a set timeline:
- Estimated Public Offering Period: October 6 – 9, 2023
- Estimated Allotment Date: October 10, 2023
- Estimated Electronic Bonds Distribution Date: October 12, 2023
- Estimated Securities Listing Date on the Indonesia Stock Exchange: October 13, 2023
Sources: THX News & PT Bank Rakyat Indonesia Tbk (BRI)
