JAKARTA. The book building of the Green Bonds of PT Bank Negara Indonesia (Persero) Tbk (BBNI) or BNI recorded oversubscription as much as four times the offering amount of IDR 5 trillion.
Henry Panjaitan, Treasury and International Director of BNI, said that the investors’ interests in Green Bonds is at all-time high. BBNI has only initiated the book building phase, and it has already received offerings from investors of IDR 21 trillion, 4 times higher than the target of IDR 5 trillion. “The offering process is still open. We’re highly optimistic regarding BNI’s credibility as the pioneer of green banking, as well as its strategic measures in boosting green economy development in Indonesia,” he added in the written statement yesterday (15/6).
Said Green Bond has obtained an “idAAA (triple A)” rating from PT Pemeringkat Efek Indonesia or Pefindo, a domestic rating agency, effective from March 8, 2022, to March 1, 2023. It will then be split into two series, including Series A of IDR 4 trillion with a three-year tenor and Series B of IDR 1 trillion with a five-year tenor.
The proceeds from the issuance of these bonds will be used in financing and refinancing projects categorised in green business activities, including renewable energy, waste management and treatment, as well as sustainable natural resource and land utilisation. “We will also employ the money in land and sea biodiversity conservation, environmentally friendly transportations, sustainable water management and treatment, climate change adaptation, green buildings, and sustainable farms. They all align with BNI’s green bond framework,” Panjaitan concluded. (AM/ZH)