Release Of IDR 5 Trillion Green Bonds, BNI Commits To Financing Environmentally Friendly Business Sector

Illustration (Photo: Doc. Antara)

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) is preparing to issue a green bond of IDR 5 trillion. The funds raised will be used to refinance projects in the category of environmentally sound business activities (KUBL).

"As a pioneer in green banking, BNI is the first national bank to issue green bonds denominated in rupiah," said BNI Deputy President Director Adi Sulistyowati in an official statement on Wednesday, May 11.

According to Adi, the bonds are offered in three series, namely series A with a term of 3 years, series B with a term of 5 years, and series C with a term of 7 years.

The sectors for distributing green bond funds will target renewable energy, waste processing into energy, sustainable use of natural resources, environmental conservation, environmentally friendly transportation, clean water management, climate change, and sustainable buildings and agriculture.

"Green banking has very high benefits for economic stability and sustainability and plays a role in inviting the community and customers to jointly encourage the realization of a green economy in Indonesia," he said.

Furthermore, Susi said that the strategy adopted by the company is in line with the Financial Services Authority (OJK) Sustainable Finance roadmap with the aim of increasing awareness and capacity of the financial services sector to operate in an environmentally friendly manner.

He explained that the developed sustainable finance integrates seven main components in one ecosystem, which consists of policies, products, market infrastructure, coordination between ministries/agencies, and support.

"In response to the request from the government and the OJK, BNI, as an intermediary for sustainable growth in Indonesia, is committed to supporting environmentally sound financing," concluded Susi.