BNI Green Bond Oversubscribed 4 times, Received Investor Interest of Rp. 21 trillion

JAKARTADAILY.ID – Investors' appreciation for the issuance of environmentally friendly 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 book building which reached oversubscribed 4 times.

Apart from credibility, BNI's move toward the sustainable economy segment is considered strategic, thereby encouraging investors' interest in absorbing this green bond.

In its Brief Prospectus, Monday, June 13, 2022, 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 Rp 4 trillion with a term of 3 years, and Series B with a principal amount of Rp 1 trillion with a term of 5 years.

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Director of Treasury and International BNI 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 green banking pioneer and accompanied by our various strategic steps to encourage the development of a green economy in Indonesia," he said in a press statement, Wednesday, June 15, 2022.

Henry said that BNI had obtained a rating for long-term debt securities from PT Pemeringkat Efek Indonesia or Pefindo for the period March 8, 2022, to March 1, 2023, with a rating of AAA or "triple-A."

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Funds obtained from the public offering of the green bond will be used for financing and refinancing projects in the Environmentally Friendly Business Activities (KUBL) category such as projects related to renewable energy, energy efficiency, and processing waste into energy and waste management, resource use. natural resources 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 the BNI green bond framework, " he said.

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