Sustainable Financing Expansion, Bank Mandiri Issues Sustainable Bonds Of IDR 5 Trillion

Illustration. (Photo: Doc. Antara)

Bank Mandiri officially opened the initial offer of Shelf-Registered Shelf-Registered Bonds I Phase I Year 2025 (Sustainability Bond) with a nominal issuance target of IDR 5 trillion.

Bank Mandiri Treasury and International Banking Director Ari Rizaldi explained that this corporate action was a strategic step for the company to strengthen the funding structure, provide differentiation in liquidity management, and enlarge intermediation space for strategic and sustainable financing.

Through this issuance, he conveyed that Bank Mandiri is targeting an expansion of the financing capacity that provides added value to the economy as well as accelerating the growth of the people's economy.

Ari said that the issuance of these sustainability bonds shows the company's commitment to strengthening financing practices in line with the national transition and sustainability agenda.

"We have compiled this instrument to provide financing that is increasingly relevant to the need for economic transformation. With the right synergy, we want to ensure that business growth is in line with sustainability and provide added value for the community," said Ari in his official statement, Tuesday, December 2.

He conveyed that the proceeds from the public offering after deducting the cost of emissions will be used to finance or refinance projects according to the Framework of Environmentally Introspective Business Activities and Socially Introspective Business Activities.

Ari emphasized that the need for sustainable funding continues to increase amid the shift in business practices towards stricter ESG standards.

This instrument is expected to expand green and social financing capacity, as well as strengthen intermediation liquidity so that strategic financing can grow more inclusively and adaptively. This is important to accelerate the people's economy," he explained.

Furthermore, these sustainability bonds will be issued in three series with a fixed interest rate and a tenor of 370 days, 3 years, and 5 years.

Meanwhile, interest payments are made every three months through KSEI with initial distribution scheduled for December 19, 2025.

The initial offer will take place from 28 November to 4 December 2025 and the public offering period will be held from 15 to 16 December 2025, followed by allotments on 17 December 2025 and records on the Indonesia Stock Exchange on 22 December 2025.

This instrument has also obtained an idAA rating from Pefindo that reflects the company's solid asset quality and risk profile.

Ari assessed that investor interest in sustainable instruments continues to increase in line with the expansion of green and social financing that is increasingly needed by various sectors.

With this issuance, Bank Mandiri continued Ari to also emphasize his position as an intermediation motorbike that supports strategic and sustainable financing.

Ari said that the company hopes that the allocation of funds can be optimally absorbed within one year in accordance with the provisions of POJK 18/2023 so that it will have a wider economic impact and strengthen the resilience of the national financial sector.

He added, through this corporate action, his party encourages more productive and sustainable financing so that the benefits feel real for the business world and society.

"We want to ensure that every strategic decision at Bank Mandiri can bring added value to the national economy and strengthen the momentum of inclusive growth," he concluded.