BNI Extends Rp 1.42 Trillion Sustainability-Linked Loans to Japfa Comfeed As It Expands to Green Banking

JAKARTADAILY.ID – State-owned lender Bank Negara Indonesia extended Rp 1.42 trillion in loans to a producer of animal proteins PT Japfa Comfeed Indonesia Tbk, as part of its efforts to provide the so-called Sustainability-Linked Loans to corporations in the country.

The loan facility comes in a five-year tenor and will be used to help fund PT Japfa's various general financing needs. This loan facility is included in BNI's green banking segment, as part of the lender's effort to help contribute to the nation's sustainable economy.

"We appreciate Japfa for taking cooperations with BNI in the development of green banking segments. We hope Japfa's businesses to accelerate through this loan facility. We expect this can be a reference to our other clients to develop sustainable businesses," said BNI's Corporate Banking Director Silvano Rumantir.

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According to Silvano, BNI has set some key indicators related to environmental preservation for the loan facility, most importantly the debtors must minimalize water pollution.

The loan facility also requires debtors to be involved in the wastewater treatment and reduce the intake of groundwater, as part of efforts to preserve the environment.

Silvano said, on top of the SLL facility, BNI seeks prospects in offering its financial solutions to Japfa to help them with the value chain production, cash management, supply chain financing as well as micro-loans to the company's employees.

"Our banking products always come with digital solutions," he said, adding for Japfa, he expects these solutions can be beneficial to the company.

Leo Handoko, a director at Japfa said the strategic deal with the lender is expected to become a "catalyst" to meet the company's sustainable targets.

Japfa, he said has initiated a so-called Life Cycle Assessment since 2019, in which it implements scientific evaluations that are integrated vertically for its production cycle from producing chicken and poultry feeds to the day-old chick products it sells.

According to its LCA program, the management of wastewater has been identified as its main focus.

Leo appreciated that the SLL has secured certifications from second party opinion, from Moody's ESG Solutions with a 'fully-aligned' opinion. This means the loan facility has complied with the five Sustainability Linked Loan Principles (SLLP) 2022, a guidebook for sustainable loans for this year.

"Japfa expects to offer contributions to the nation-wide goals of development by producing animal proteins, which is safe, and affordable through an efficient production system that preserves natural resources and minimalizes the waste," he said.

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