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The demand for BRI's Global Sustainability Bond reaches US$ 4.1 billion

27 March 2019 12:49 PM  Company: PT. Bank Rakyat Indonesia (Persero) Tbk[BBRI]
Rp. 3,790  -70 (-1.81%)

JAKARTA. The first Global Sustainability Bond issued by PT Bank Rakyat Indonesia Tbk (BBRI) with a value of worth US$ 500 million received a positive response, reflected by the demand for the bonds that reached US$ 4.1 billion.

"It was noted that investors' interest in these bonds reached more than US$ 4.1 billion. So from the value released of US$ 500 million, there are up to eight times oversubscription, "said Managing Director of BRI Suprajarto to Kontan.co.id on Tuesday (26/3).

The global sustainability bond has a tenor of five years with a coupon of 3.95% per year paid every semester. According to Suprajatno, the bond was issued to accelerate BRI's credit expansion, particularly in the MSME loan segment.

"This issuance is an alternative funding to strengthen our credit in the MSME sector, which last year reached 76.5% of total loans," he continued.

Throughout 2018, the largest bank in the country managed to score credit growth of up to 13.6% (YoY) to Rp. 804.33 trillion. This caused BRI to book a profit of Rp 31.70 trillion, a growth by 11.4% (YoY).

While this year, Suprajarto targets BRI to record a credit growth above 14%. The target is based on the increasing number of stimulus given by the government to boost people's purchasing power, as well as the relaxation of RIM from Bank Indonesia. (AM/AR)

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PT. Bank Rakyat Indonesia (Persero) Tbk [BBRI]   Rp. 3,790   -70 (-1.81%)