Adaro Is On The List Of The Dirtiest Bond Publishers In The World

Photo: Special

JAKARTA - Analysis of Dirty 30 from the Toxic Bond Initiative places a coal company from Indonesia, Adaro as one of the publishers of the dirtiest bonds with companies such as Exxon and Shell.

Reporting from the analysis of the Toxic Bond Initiative, Adaro has been named one of the world's dirtiest bond publishers. Adaro joins the world's largest fossil fuel companies from various parts of the world such as Adani, Exxon, Shell, Saudi Aramco and Total Energies.

Nabila Gunawan, an Energy and Finance Campaigner from the Market Forces agency said, based on the Toxic Bonds Initiative, this year there will be nearly 54 billion US dollars in bonds from dirty energy companies that will mature, including Adaro's bonds.

On October 31 this year, the bonds belonging to Adaro Energy Indonesia (ADRO) subsidiary Adaro Indonesia, amounting to USD 750 million will mature. Adaro has not announced plans to refinancing the bonds.

Nabilla said, although Adaro has not announced a refinancing plan, the prospect of getting investor support is very gloomy if Adaro does not immediately limit and the transition is out of the rock.

"Currently, there are more than 200 financial institutions that have divestment policies from dirty energy, it is undeniable that currently dirty stones have become common enemies with investors," Nabilla said in a statement received by VOI, Friday, April 5.

Nabila also said that without credible plans for a transition out of the coal business that is in line with net zero in 2050, and with reduced sources of coal funding, Adaro's premium for debt and bonds could increase.

Nabila said that Adaro'sappropriation as one of the world's dirtiest bond publishers occurred at the same time after a series of companies and banks left Adaro.

Nbila menjadi, belum lama ini Hyundai keluar dari perjanjian MoU pembelian aluminium dari produksi Adaro Minerals (ADMR). Berdasarkan data Market Forces, ketika Adaro mencari pendanaan untuk proyek smelter dan pembangkit listrik PLTU tahun lalu, melalui Kalimantan Aluminum Industry (KAI) dan Kaltara Power Indonesia (KPI), Adaro juga tidak berhasil mendapatkan komitmen bank internasional.

With the increased risk of asset funding and coal companies, the majority of international banks have closed funding to the sector.

However, based on the Bank Track analysis, with the shrinking of bank loans for the coal and fossil energy sector, dirty energy companies turned to bonds as an option for external funding instruments. Bonds represent 53 percent of external funding for energy companies in 2020, while that figure is 26 percent in 2010.