Jakarta, 15 June 2022 -- Investor appreciation for the issuance of environmentally sound bonds issued by PT Bank Negara Indonesia (Persero), Tbk or BNI (stock code: BBNI) is very strong, this can be seen from investors’ interest during bookbuilding which reached oversubscribed by 4 times. Apart from credibility, BNI's move towards the sustainable economy segment is considered strategic so that it encourages investors' interest in absorbing this Green Bond.
In its Prospectus Summary (13/6), BNI announced that it would issue bonds with a principal amount of Rp 5 trillion. The bonds were decided to be divided into 2 series, namely Series A with a principal amount of IDR 4 trillion with a term of 3 years, and Series B with a principal amount of IDR 1 trillion with a term of 5 years.
BNI Treasury and International Director, Henry Panjaitan said the company has carried out book building and has received investor interest of Rp 21 trillion or 4 times the issuance target of Rp 5 trillion.
“The bidding process is still ongoing. However, we are very optimistic about our credibility as a pioneer in green banking and accompanied by our various strategic steps to encourage the development of a green economy in Indonesia," he said.
Henry said that BNI had obtained a rating on long-term debt securities from PT Pemeringkat Efek Indonesia or Pefindo for the period 8 March 2022 to 1 March 2023 with a rating of idAAA or triple A.
Funds obtained from the Green Bond public offering will be used to finance and refinance projects in the Environmentally Friendly Business Activities (EFBA) category such as projects related to renewable energy, energy efficiency, waste processing into energy and waste management, natural resources use and sustainable land use.
"Beyond that, we will also use it for land and water biodiversity conservation, environmentally friendly transportation, sustainable water and wastewater management, climate change adaptation, environmentally friendly buildings, and sustainable agriculture, this is in line with BNI green bond framework, he said.