Oversubscribed 3.74 Times, Bank Mandiri Green Bonds Raise Funds Of IDR 5 Trillion

Photo: Doc. Bank Mandiri

JAKARTA - PT Bank Mandiri (Persero) Tbk has completed its initial bid (bookbuilding) of Shelf-Registered Environmental Bonds I (Green Bond) with a target of raising funds of IDR 5 trillion.

In the bookbuilding period which took place on May 23 - June 4, 2023, incoming bids reached IDR 18.7 trillion or there was an oversubscribed increase of 3.74 times.

"This is proof that investors' interest in sustainable financial products in line with Environmental, Social and Governance (ESG) aspects is getting higher," said Bank Mandiri Deputy President Director Alexandra Askandar, in Jakarta, Friday, June 23.

These bonds will be issued in two series, namely Series A which has a period of 3 years with 5.80 percent coupon per year and Series B which has a period of 5 years with a coupon of 6.10 percent per year.

After obtaining an effective date on June 21, 2023, Bank Mandiri's Green Bond Phase I 2023 entered the public offering period on 23-26 June 2023 and is planned to be listed on the Indonesia Stock Exchange on July 4, 2023.

Bank Mandiri's Green Bond public offering Phase I 2023 is part of the plan for a Sustainable Public Offering of Sustainable Environmental Intensive Bonds I Bank Mandiri with a target fund of IDR 10 trillion.

The funds collected from the results of the Green Bond Public Offering, in accordance with the provisions of POJK 60/2017 concerning Issuance and Requirements of Environmentally Involved Securities (Green Bond), will be allocated by the Company at least 70 percent to finance or refinance (refinement) for activities that are included in 11 categories of Environmentally Introspective Business Activities (KUBL).

These categories include Renewable Energy; Energy Efficiency; Prevention and Control of Pollution; Management of Biological Natural Resources and Use of Sustainable Land; Conservation of Land and Water Biodiversity; Environmentally Friendly Transportation.

Also for Sustainable Wastewater and Water Management; Adaptation of Climate Change; Products That Can Reduce the Use of Resources and Generate Less Pollution (Eco-Efficient); Environmentally Introspective Buildings that Meet the Standards or Certifications Recognized Nationally, Regionally, Or Internationally; As well as Business Activities and/or Other Activities of Other Environmentally Introspective Business Activities.

In terms of allocation, Bank Mandiri will focus, among others, on business activities that are included in the category of Management of Biological Natural Resources and the Use of Sustainable Lands and Renewable Energy. This is in line with the government's priority program in achieving the national sustainability target.

"The issuance of Green Bond is a manifestation of Bank Mandiri's commitment and consistency in the implementation of Sustainable Finance and the aspirations of Bank Mandiri to become Indonesia's Sustainability Champion for A Better Future through the development of various sustainable financial products and services as an alternative to financial products that not only provide returns for investors, but also have a positive impact on the environment," concluded Alexandra.

This is not the first time Bank Mandiri has raised ESG-based funds. Previously, Bank Mandiri had raised ESG-based funds through the USD 300 million Sustainability Bond with oversubscription requests more than 8.3 times.

In 2022, Bank Mandiri has also made an ESG Repo transaction of 500 million US dollars, which is the first ESG Repo transaction in Indonesia and one of the first movers in Southeast Asia.