Bank Rakyat Indonesia issues new green bonds worth IDR6t

This is in line with the BRI’s commitment to sustainable finance.

The Bank Rakyat Indonesia (BRI) announced its IDR6.0t issuance in Green bonds for 2023. This includes three series’ of 1-year with a coupon rate of 6.10%, 2-year (6.35%), and 3-year (6.30%).

The 2023 Green Bonds Phase II saw remarkable demand, with a subscription rate of 2.66 times during the book-building period. 

The proceeds generated from this Green Bonds issuance will predominantly support various environmentally conscious projects, including renewable energy, energy efficiency, pollution control, eco-friendly transportation, and sustainable land use initiatives. 

Their past issuances encompass Sustainable Bonds, Sustainable-Linked Loans, Medium-Term Notes, and Subordinated Debt.

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A minimum of 70% of the raised funds will be channelled into environmentally responsible business activities, while the remainder will be directed toward Small and Medium-sized Enterprises (SME) financing. 

The announcement comes after the fund usage framework was released by the Financial Services Authority.

The schedule for the issuance of BRI's Green Bonds Phase II in 2023:

• Estimated Public Offering Period: 6 to 9 October
• Estimated Allotment Date: 10 October
• Estimated Electronic Bonds Distribution Date: 12 October 
• Estimated Securities Listing Date on the Indonesia Stock Exchange: 13 October