Indonesian lender BRI issues USD-383m green bond

Indonesia-based PT Bank Rakyat Indonesia (BRI) Persero Tbk (IDX:BBRI) announced today that it has raised IDR 6 trillion (USD 383.7m/EUR 365.7m) through green bond issuance, with the majority of the proceeds to go for green economy and sustainable initiatives.

The funds will be used to mainly support renewable energy, energy efficiency, pollution control, eco-friendly transportation and sustainable land use projects. At least 70% of the proceeds will be allocated to environmentally responsible business activities, with the rest directed towards SME financing, according to a statement.

The green bonds were issued in three series, due in one, two and three years, and bear coupon rates of 6.10%, 6.35% and 6.30%, respectively.

“BRI remains steadfast in supporting government initiatives stemming from the G20 High-Level Conference, particularly those related to Environmental Management and Climate Change Control, through environmentally focused funding activities," said Agus Noorsanto, director of wholesale and institutional business at BRI.

(IDR 10,000 = USD 0.639/EUR 0.609)

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