BRI Issued Rp6 Trillion Green Bond, Check the Coupon and Schedule

Jakarta – BRI re-issued Green Bond through Sustainable Environmentally Sound Bonds I Phase II Year 2023 amounting to IDR 6 trillion.

The publication is carried out in 3 series, namely Series A (1 year) with a coupon of 6.10 percent, Series B (2 years) with a coupon of 6.35 percent and Series C (3 years) with a coupon of 6.30 percent and the framework for the use of funds refers to POJK No.60 / POJK.04 / 2017.

The Green Bond Phase II Year 2023 was oversubscribed 2.66 times during the book building period. This issuance will record BRI as the largest domestic green bond issuer in Indonesia after previously issuing IDR 5 trillion in 2022.
Renewable energy, energy efficiency, pollution prevention and control, environmentally friendly transportation and sustainable land use are the main segments of the use of proceeds from the issuance of this Green Bond.

This corporate action is one of BRI’s efforts in realizing the Green Economy and is also part of a funding strategy that adheres to Sustainable Principles after BRI previously successfully issued Sustainable Bonds, Sustainable Related Loans, Inclusive MTN and Inclusive Subdebt.

Director of Wholesale & Institutional Business BRI, Agus Noorsanto said, the allocation of the proceeds from raising funds will be used for business activities or other activities included in the criteria for Environmentally Sound Business Activities (KUBL) of at least 70 percent.

While the rest will be used for funding in the MSME segment as one of BRI’s manifestations in carrying it out as an agent of national development. Funding for environmentally sound activities also includes refinancing green bonds that mature in 2023.

“BRI is optimistic that it can continue to provide value, not only economic value but also encourage social value for all levels of society in line with BRI’s vision to become The Most Valuable Banking Group in Southeast Asia & Champion of Financial Inclusion. BRI is also committed to supporting government programs in implementing one of the agreements at the G20 Summit related to Environmental Management and Climate Change Control through funding activities in business activities or other environmentally sound activities,” Agus Noorsanto said in an official statement. October 2, 2023.

SEVP Treasury & Global Services BRI, Achmad Royadi added that this corporate action further strengthens BRI’s position as a market leader in the application of Environmental, Social & Governance (ESG) in Indonesia which encourages the implementation of the third dimension in banking activities to support the national economy through changes in business patterns to become sustainable.
“The issuance of this Green Bond also recorded high demand from retail investors, which is a tangible manifestation of BRI in supporting the government’s strategy related to inclusive finance (financial inclusion). On the other hand, the risk aspect of this bond is relatively maintained, as shown by the idAAA (Triple A) rating given by Pefindo for the BRI Green Bond. The rating shows the company’s strong ability to meet long-term financial obligations,” Achmad concluded.

The disclosure schedule for BRI’s Green Bond or Sustainable Environmentally Sound Bonds I Phase II Year 2023 is as follows:

Estimated Public Offering Period: October 6-9, 2023
Estimated Allotment Date: October 10, 2023
Estimated Electronic Obligation Distribution Date: October 12, 2023
Estimated Date of Listing of Securities on the Indonesia Stock Exchange: October 13, 2023. (*)