BRI Issues First IDR 5 Trillion Social Bond, Sets Precedent for Sustainable Financing in Indonesia

PT Bank Rakyat Indonesia (BRI) issued a 5 trillion IDR social bond, oversubscribed by 1.31 times. This is BRI's first social bond, marking the bank as the first in Indonesia to do so. The bond received a Triple A rating from PEFINDO, indicating high creditworthiness. BRI aims to raise a total of 20 trillion IDR through its Sustainable Public Offering Program I, supporting sustainable financing and financial inclusion.

Title: BRI Issues IDR 5 Trillion Social Bond, Highlighting Commitment to Sustainable Financing

PT Bank Rakyat Indonesia (BRI) has made a significant stride in Indonesia's financial landscape by issuing its first social bond, valued at IDR 5 trillion. The issuance, which was oversubscribed by 1.31 times, marks a notable milestone as it is the first social bond issued by a bank in the country [1].

The bond, part of BRI's Sustainable Public Offering Program I, aims to raise a total of IDR 20 trillion, thereby supporting the bank's commitment to inclusive and sustainable financing. This initiative underscores BRI's strategy to strengthen its funding structure by diversifying its wholesale-based funding sources and broadening access to competitive and sustainable capital markets [1].

The bond received a Triple A (idAAA) rating from the Indonesian credit rating agency PEFINDO, indicating its high creditworthiness. It is offered in three series: Series A with a 2-year tenor and a fixed interest rate of 6.45% per annum, Series B with a 3-year tenor and a fixed interest rate of 6.55% per annum, and Series C with a 5-year tenor and a fixed interest rate of 6.60% per annum [1].

The issuance was facilitated through a bookbuilding process, with 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 Social Framework was developed in collaboration with ESG Coordinator Bank DBS Indonesia [1].

The bond will be listed on the Indonesia Stock Exchange (IDX) and registered with KSEI. Coupon payments will be made quarterly, with a full principal repayment at maturity. This issuance not only reflects BRI's dedication to expanding financial inclusion but also serves as a testament to its commitment to ESG-oriented financing [1].

For more information about BRI, visit www.bri.co.id [1].

References:
[1] https://www.prnewswire.com/news-releases/bri-becomes-first-in-indonesia-to-issue-idr-5-trillion-social-bond-to-support-inclusive-sustainable-financing-302490538.html