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BNI seeks Rp 5 trillion from green bond sale
The funds would go toward financing green projects, such as renewables, waste management and green buildings.
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BNI employees print credit cards at the lender’s card business division in Jakarta on Aug. 10, 2012. (JP/Nurhayati)
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tate-owned Bank Negara Indonesia (BNI) seeks to raise Rp 5 trillion (US$342.95 million) from the sale of green bonds to finance green projects.
The bonds would come with tenures of three years, five years and seven years, said the publicly listed lender in a filing with Indonesia Stock Exchange (IDX) on Tuesday. BNI did not mention the coupon rates.
BNI said it would use the funds to finance green projects (KUBL) related to renewable energy, waste management, green buildings, sustainable land use and water conservation, among others. The lender will use its Green Bond Framework to assess project eligibility.
“KUBLs are any business or other activity that aims to protect, fix or improve the quality or functionality of the environment,” said BNI.
The book-building period will run until May 25, the offer period from June 14 to 16, and the allotment period is June 17.
The bond issuance comes as the Financial Services Authority (OJK) implements the second phase (2021-2025) of its sustainable finance road map that focuses on raising awareness and capacity building.
BNI said it was partaking in the road map by developing products and market infrastructure. The bank said it would also comply with OJK Regulation No. 60/2017 on the issuance of green bonds.
