JAKARTA, Indonesia, June 25, 2025 /PRNewswire/ — PT Bank Rakyat Indonesia (Persero) Tbk, (IDX: BBRI) has made a bold move into the sustainable finance arena, successfully launching its inaugural Sustainable Social Bond, Phase I of Year 2025. The issuance, valued at IDR 5 trillion, has already demonstrated strong investor confidence, attracting IDR 6.57 trillion in subscriptions – a substantial 1.31 times over the initially targeted amount. This early success underscores growing investor appetite for Environmental, Social and Governance (ESG) focused instruments.
This initial offering is a key component of BRI’s broader Sustainable Public Offering Program I, which aims to raise a total of IDR 20 trillion. This landmark issuance also positions BRI as the first bank in Indonesia to issue a Social Bond, a significant milestone in the country’s burgeoning sustainable finance landscape.
The agreement signing ceremony was attended by key BRI executives, including President Director Hery Gunardi. The strong turnout of underwriters and supporting institutions further highlighted the market enthusiasm surrounding the issuance, signaling confidence in BRI’s strategic direction.
According to President Director Hery Gunardi, BRI’s decision to tap into the social bond market was driven by the current relative scarcity of socially focused financial instruments within Indonesia. He emphasized that the move represents tangible proof of BRI’s dedication to ESG-oriented financing and its commitment to contributing to a more sustainable financial ecosystem.
Beyond its social impact, the issuance aligns with the bank’s broader strategy to fortify its funding structure. By diversifying its financing through wholesale-based sources, BRI is strategically expanding its access to the capital markets. This approach allows the company to secure competitive funding rates and establish a more sustainable financial foundation for future growth.
The bond has received a coveted Triple A (idAAA) rating from Indonesian credit rating agency PEFINDO. It is offered in three distinct series, each catering to different investor preferences:
Series A: 2-year tenor with a fixed interest rate of 6.45% per annum
Series B: 3-year tenor with a fixed interest rate of 6.55% per annum
Series C: 5-year tenor with a fixed interest rate of 6.60% per annum
The Social Bond was issued via a bookbuilding process orchestrated by a consortium of prominent underwriters, including PT BRI Danareksa Sekuritas, PT Trimegah Sekuritas Indonesia Tbk, PT Mandiri Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas, and PT Bahana Sekuritas. The underlying Social Framework was developed with ESG Coordinator Bank DBS Indonesia.
The bond will be listed on the Indonesia Stock Exchange (IDX) and registered with KSEI. Coupon payments will be distributed quarterly, with principal repayment structured as a bullet payment at maturity.
As this groundbreaking issuance concludes, Hery Gunardi reiterated that the bond will further concrete BRI’s commitment to expanding financial inclusion within the country while empowering local communities through sustainable financing initiatives. This bold step suggests that it will be a game changer for the company, but a win for the country’s sustainable finance sector.
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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)
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