Jakarta – Bank Mandiri is offering green bonds to raise around Rp 5 trillion to fund various environmentally friendly businesses to help the government achieve its net-zero emission goal, the state-owned lender said.
The debt securities being offered is the first tranche of the total Rp 10 trillion the bank plans to issue in stages, said its President Director Darmawan Junaidi.
“The green bond issuance is one of the initiatives that affirms Bank Mandiri’s consistency in carrying sustainable financing by developing sustainable financial products and services as well as increasing green financing portfolios,” said Junaidi.
The bank has named Bahana Sekuritas, BNI Sekuritas, CIMB Niaga Sekuritas, Mandiri Sekuritas, and Trimegah Sekuritas Indonesia as underwriters for the issuance.
Issuing green bonds is not new for Bank Mandiri. The bank in 2021 issued USD 300 million in Sustainability Bonds, which was followed by the issuance of another USD 500 million worth of ESG Repo in 2022, the bank said.
Bank Mandiri as of March 2023 has channeled IDR 232 trillion loans to companies that apply strict environmental, social, and governance (ESG) principles in doing business, or 25% of its loan portfolios, it added. Among the companies are sustainable agriculture, renewable energy, clean transportation as well as small and micro businesses.
The bank will continue to encourage its clients to apply sustainable business practices by introducing more sustainable loan products, it mentioned. (I Made Sentana)
