Bank Mandiri Salurkan Sustainability Linked Loan To DSNG Worth IDR 500 Billion

Illustration (Photo: Doc. Antara)

JAKARTA - In an effort to reduce greenhouse gas (GHG) emissions and achieve national sustainable targets, Bank Mandiri has distributed sustainable financing in the form of a Sustainability Linked Loan (SLL) worth IDR 500 billion to PT Dharma Satya Nusantara Tbk (DSNG).

Bank Mandiri's Corporate Banking Director, Susana Indah Kris Indriati said, this financing aims to support the company's capital expenditure and operational needs as well as become a supporting catalyst for DSNG to continue to increase its commitment to implementing the principles of sustainable oil palm plantation cultivation.

"We are also proud to be working with DSNG, in providing sustainable financing. We hope that this collaboration can be a driving force for other companies in the plantation sector to participate in efforts to reduce emissions and achieve Indonesia's sustainable targets. This collaboration is also in line with Bank Mandiri's vision to become Indonesia's Sustainability Champion for a Better Future," said Indah in her official statement, Wednesday, November 1.

For your information, the Sustainability Linked Loan is a financing instrument that provides incentives to debtors to achieve the sustainable performance goals that have been set.

With this financing, Bank Mandiri and DSNG agreed to set sustainability targets that must be achieved by DSNG, such as reducing GRK emissions, increasing productivity, and implementing Roundtable on Sustainable Palm Oil (RSPO) certification.

Indah said, Bank Mandiri as the largest Wholesale Banking in Indonesia and the ESG Market Leader in Indonesia, has aspirations to play an active role in supporting the achievement of national sustainability targets.

This strong commitment is realized through the distribution of Sustainable Portfolio which has reached around 25 percent of the total bank wide credit as of September 2023.

Posisi per September 2023, khusus untuk green portfolio, Bank Mandiri telah menyalurkan Rp122 triliun atau lebih dari 30 persen dari total Green Portfolio Indonesia, yang menjadikan Bank Mandiri sebagai market leader di sisi penyaluran green portfolio.

The provision of the Sustainability Linked Loan facility is a form of strategic cooperation between Bank Mandiri and DSNG to realize sustainable oil palm plantation cultivation, in line with the principles and criteria of sustainable palm oil plantations by Roundtable on Sustainable Palm Oil (RSPO) which includes three main aspects, namely people, planets, and property.

By implementing sustainable oil palm plantation cultivation practices, DSNG will not only improve the welfare of the surrounding garden workers and oil palm farmers, but will also reduce GRK emissions in plantation cultivation operations.

This is in line with Bank Mandiri's mission to have a positive impact on the environment and society through the distribution of sustainable financing.