Support Sustainable Loans, Bank Mandiri Has Distributed IDR 253 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri (Persero) Tbk. (BMRI) also supports the Government's plan to consistently encourage the company's contribution to sustainable financing and green financing.

Bank Mandiri President Director Darmawan Junaidi revealed that until the third quarter of 2023, the company had disbursed loans to the sustainable sector amounting to Rp253 trillion or 24.9 percent of the company's total credit.

"From this value, financing to the green sector of Bank Mandiri has reached Rp122 trillion, equivalent to 12 percent of lending in the same period," he explained at the MSF 2023 event, Thursday, December 7.

Darmawan said that the distribution of Green Financing strengthened Bank Mandiri's position as a market leader with a share of approximately 30 percent.

Meanwhile, in terms of funding, Bank Mandiri has issued a Sustainability Bond of US$300 million with 8.3 times oversubscription rate.

Then, Bank Mandiri became the first bank in Indonesia to conduct an ESG Repo Transaction with a value of up to 500 million US dollars.

Darmawan said, in early 2023 the company had also issued a Green Bond Phase I of IDR 5 trillion which was part of the Sustainable Public Offering (PUB) plan with a target fund of IDR 10 trillion.

"As for, these bonds are the implementation of Bank Mandiri to encourage financing to the Environmentally Introspective Business Category sector which is in line with regulatory policies," he explained.

Darmawan added that his party has also consistently adopted broader ESG practices, including in the company's operations.

Economic and geopolitical uncertainties have now shifted the issue of sustainability into energy availability. However, we believe that the issue of ESG will become mainstream. Even if there is a shock, this remains important going forward," he concluded.