Oversubscribe, Pollux Hotels Group Officially Issues Sustainable Bonds

JAKARTA - PT Pollux Hotels Group Tbk (POLI) officially recorded Bonds related to Sustainability-Linked Bond (SLB) I 2025 on the Indonesia Stock Exchange (IDX).

The President Director of the Pollux Hotels Group, Handojo K Setyadi, said that this step made the company the first developer of hospitality properties in Indonesia to issue the sustainable standard funding instrument.

He emphasized that the issuance of SLB bonds was not just a corporate action, but a strategic milestone in strengthening the sustainability-oriented business model.

"This support is a form of international trust in our financial fundamentals as well as an acknowledgment that reducing carbon emissions, energy efficiency, and resource management have become the core of the company's strategy," he said in his statement, Friday, November 12.

The issuance of these SLB bonds received full and unconditional guarantees from the Credit Guarantee and Investment Facility (CGIF), a trust fund institution under the Asian Development Bank (ADB).

Pollux appointed PT Korea Investment and Securities Indonesia (KISI) as the underwriter and Bank BJB acted as trustee, while legal aspects involved Irma & Solomon Law Firm, Kanaka Puradireja Suhartono, and Notary Elisabeth Karina Leonita.

Pollux stated that the proceeds from the issuance were not only used for credit refinancing, but also allocated for sustainability initiatives such as emission reduction, energy efficiency improvement, cooling system optimization, and wastewater remanagement across the company's properties.

Handojo emphasized the Pollux's commitment to maintaining a balance between financial growth and environmental sustainability.

"Business growth should not be separated from risk management and ecological impacts," he said.

He added that through the issuance of this SLB, Pollux hopes to be a reference for sustainable financing practices in the hospitality sector.

"We want this instrument not only to provide added value to investors, but also to be a concrete example for the property industry in Indonesia," said Handojo.

Meanwhile, Director of Social and Environmental Compliance Pollux Hotels Group Jo Diana Po revealed that the market responded positively to the issuance of the SLB, namely from the target of raising funds of around Rp. 500 billion, the number of orders was recorded almost double (oversubscribe).

He added that the majority of investors chose a five-year tenor with a coupon of 6.25 percent.

"This shows the market is ready and believes that Indonesia is moving towards global ESG standards," Diana said.

He considered the importance of consistent implementation of the ESG, especially after the tragedy in Sumatra which claimed nearly a thousand lives, hundreds of injuries, and many residents are still reported missing.

According to him, the event serves as a reminder that sustainability must be carried out not only as a slogan, but as a joint commitment.

"ESG cannot only be borne by the government. Industry must invest in green technology, while people need to be encouraged to understand the importance of sustainability," he said.

Meanwhile, IDX's Director of Corporate Assessment, I Gede Nyoman Yetna, said that the bond was ranked AAA Corporate Guarantee from CGIF and this rating could strengthen the appeal of the instrument amid growing investor interest in sustainable financing.

Menurut Nyoman, dana hasil penerbitan akan digunakan untuk refinancing fasilitas kredit serta mendukung inisiatif keberlanjutan Pollux di seluruh jaringan propertinya.

“Kami berharap perusahaan dapat membangun struktur keuangan yang lebih sehat serta meningkatkan efisiensi penggunaan sumber daya untuk menurunkan jejak karbon,” ujarnya.

Selain itu, ia menilai penerbitan ini menambah ragam pilihan investasi dengan kupon kompetitif.

According to Nyoman, the proceeds from the issuance will be used to refinancing credit facilities and support the Pollux sustainability initiative in all of its property networks.

"We hope that the company can build a healthier financial structure and increase the efficiency of using resources to reduce carbon footprint," he said.

In addition, he assessed that this issuance adds to the various investment options with competitive coupons.