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EBA-CBI deal to accelerate green bond issuance
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Dock workers are seen at North Jakarta's Tanjung Priok container port in this file photo. (The Jakarta Post/Stefani Ribka)
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n order to accelerate the issuance of green bonds, the government has facilitated the cooperation between asset-backed securities firm PT Efek Beragun Aset (EBA) and the Climate Bonds Initiative (CBI), which signed a memorandum of understanding on Monday in Jakarta.
It is hoped that the financial instrument for green projects could become an alternative source of financing for infrastructure development projects.
The CEO of the Non-State Budget Investment Financing (PINA) Center, Eko Putro, said green bonds had been widely used in many other countries to develop a variety of infrastructure projects.
For example, Eko said, three infrastructure projects that could be financed with green bonds were Kertajadi International Airport in West Java, the expansion of Tanjung Priok port in North Jakarta and the Jati Luhur hydro power plant in West Java.
Eko declined to mention the total funds needed for each project, as he had to speak first with the management of each project. State-owned airport operator PT Angkasa Pura II is managing the Kertajadi airport project, while state-owned seaport operator PT Pelindo II is managing the Tanjung Priok project.
“We have to map out conditions so that each party can carry out a business-to-business deal,” Eko added as reported by kontan.co.id.
Meanwhile, CBI CEO Sean Kidney said that based on CBI's data, green bonds grew 78 percent in 2017, with global issuance involving 37 countries and more than 1,500 green bonds totaling US$155.5 billion.
He added that Indonesia could potentially collect $300 billion from green bonds in the next two years. (bbn)
