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BNI green bonds oversubscribe four times
Investors are demonstrating a keen appreciation of the environmentally friendly bonds issued by State-owned PT Bank Negara Indonesia (Persero) Tbk (BNI stock code: BBNI), as shown by the growing interest during the book building period, which reached oversubscription four times
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(Photo: bni.co.id)
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nvestors are demonstrating a keen appreciation of the environmentally friendly bonds issued by State-owned PT Bank Negara Indonesia (Persero) Tbk (BNI stock code: BBNI), as shown by the growing interest during the book building period, which reached oversubscription four times. Aside from credibility, BNI’s steps toward building a sustainable economy are regarded as strategic by investors with its green bonds.
In a brief prospectus on June 13, BNI announced the issuing of bonds with a principal amount of Rp 5 trillion. The bonds were divided into two series, namely series A with a principal amount of Rp 4 trillion with a three-year term and Series B with a principal amount of Rp 1 trillion and a five-year term.
BNI director of treasury and international Henry Panjaitan said the company had carried out its book building and had received investor interest of Rp 21 trillion, four times the issuance target of Rp 5 trillion. “The bidding process is still ongoing. But we are very optimistic about our credibility as a green-banking pioneer and the strategic measures we’ve taken to encourage the development of a green economy in Indonesia,” he said.
Henry said that BNI received an idAAA or triple-A rating for long-term bonds from the Indonesian Credit Rating Agency (Pefindo) from March 8, 2022, until March 1, 2023. The funds from the general offering of the green bonds will be used for financing or refinancing green projects related to renewable energy, energy efficiency, processing waste into energy and waste management, use of natural resources and sustainable land use.
“We will also use [the offering] for the conservation of terrestrial and marine biodiversity, environmentally friendly transportation, sustainable water and waste water management, climate change adaptation, green buildings and sustainable agriculture, which all go hand in hand with BNI’s green bond framework,” Henry added.
