BNI Salurkan Sustainability Linked Loan 32 Million US Dollars To The Gunung Raja Paksi Steel Producer

Photo: Doc. BNI

JAKARTA PT Bank Negara Indonesia (Persero) Tbk (BNI) has agreed to cooperate with PT Gunung Raja Paksi or GRP related to the initiative of an environmental, social and governance (ESG) strategy to realize a sustainable economy.

Director of Enterprise and Commercial Banking BNI Muhammad Iqbal said the company has the same vision as GRP as an industry player who is quite leading in implementing sustainable production methods.

"As a pioneer of green banking in Indonesia, we hope to continue to encourage changes towards a sustainable future of business activities and comprehensive business cooperation," he said in a written statement quoted on Thursday, December 29.

According to Iqbal, BNI and GRP will be able to optimize the potential for corporate value chain financing, cash management, payment channel, supply chain financing, KUR financing to partners and employee consumer products.

"We are ready to provide funds and loans, of course by providing solid digital solutions for GRPs," he said.

On the same occasion, GRP Chief Financial Officer Roymond Wong revealed that his party was the first steel factory to receive a sustainability linked loan (SLL) of US$32 million, equivalent to Rp500 billion through BNI.

This is a continuation of a series of corporate initiatives after the inauguration of the ESG Strategy Handbook last October whose process collaborated with PT ERM Indonesia. The ESG Risk Rating assessment process was also carried out by independent and international parties, with the submission of these two reports to the bank, the company will receive further economic incentives," he said.

Roymond explained that GRP is committed to increasing operational efficiency through reducing energy consumption so that it is expected to be able to contribute positively to reducing carbon emissions.

"We appreciate this BNI support. Of course, this joint strategic step not only encourages sustainable production methods for GRPs, but also allows Indonesia to accelerate decarbonization efforts," he stressed.

For information, the five-year bilateral loan, which has been signed since June 2022, will be used to fund one of the recently inaugurated GRP sustainability initiatives, which includes the Light Section Mill (NGO) project.