Support Efforts For The Energy Transition Of PLN, BTPN And Sumitomo Mitsui Banking Corporation For Green Financing IDR 1.46 Trillion

PLN building. (Photo: Doc. Antara/PLN)

JAKARTA - PT Bank BTPN Tbk and Sumitomo Mitsui Banking Corporation (SMBC) agreed to provide green financing of US$93.75 million or Rp1.46 trillion to PT Perusahaan Listrik Negara (Persero) or PLN.

The facility is part of a syndicated loan worth a total of 750 million US dollars which was signed jointly by creditors and PLN on Friday 23 December. In this case, BTPN and SMBC jointly act as mandated lead arrangers and bookrunners, as well as green loan coordinators.

BTPN and SMBC provide these green financing facilities to support PLN activities in energy transition efforts towards renewable energy.

"We are committed to channeling sustainable financing for environmentally friendly business activities as a form of support for government programs to realize sustainable development," said BTPN Head of Wholesale and Commercial Banking Nathan Christianto in a statement quoted by Antara, Monday, December 26.

Nathan added that his party designed green financing products, one of which was for corporate customers who supported sustainability, including through renewable energy projects to jointly achieve net zero emissions.

Apart from this syndicated loan, BTPN has disbursed loans for environmentally-minded activities according to the definition of the Financial Services Authority (OJK) of IDR 6.7 trillion as of the end of September 2022, up 52 percent from IDR 4.4 trillion in the same period last year.

In addition to the renewable energy sector, BTPN also designed green financing products for the environmentally friendly transportation sector, management of biological natural resources and sustainable land use, energy efficiency, and environmentally friendly buildings.

In 2021, BTPN will provide green financing of IDR 1.06 trillion to PT Kepland Investama for credit refinancing used for the construction of the International Financial Center (IFC), Tower 2 on Jl. General Sudirman, Jakarta.

Bank BTPN's initiative in channeling green loans is based on two things, namely the SMBC Roadmap Addressing Climate Change POJK program No. 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies.

The Roadmap Addressing Climate Chang is SMBC's commitment, as a member of the Clean Zero Banking Alliance (Net-Zero Banking Alliance), to align its loan portfolio and investment with zero-emission plan by 2050.

SMBC is also committed to achieving net zero through its group operations by 2030, one of which is channeling sustainable financing which is targeted to reach 30 trillion yen by 2030.

"In line with this commitment, we hope that the distribution of green financing by Bank BTPN can support the achievement of sustainable development goals launched by the government. With enormous potential to continue to grow, green financing is one of the most important aspects of funding to create a sustainable economy that is increasingly being demanded," said Nathan.