Green Bond Effective, This is BNI's target sector

Green Bond Effective, This is BNI's target sector

Jakarta, 23 June 2022 -- PT Bank Negara Indonesia (Persero), Tbk. or BNI (share code: BBNI) is increasingly optimistic to accelerate the performance of green banking this year in line with the effectiveness of the Rp 5 trillion BNI Green Bond.

BNI Corporate Secretary Mucharom conveyed that BNI's green financing growth performance is still growing positively in line with sustainable credit agreements that are still running aggressively both in the MSME and corporate segments in the first half of this year.

BNI also sees green banking as the future of national banking. Moreover, the economic concept that will be used in the future is a circular economy, namely an economic ecosystem that prioritizes the recycling of various wastes as production raw materials in order to reduce the excessive exploitation of natural commodities. This economic model prioritizes efficiency in order to reduce the emission of greenhouse effect.

“We are grateful and of course very proud that we have succeeded in issuing Green Bonds. This pride is even more complete because of the overwhelming response and appreciation by oversubscribe up to 4 times. Of course, the funds raised will be used immediately to encourage stronger green banking performance," he said.

Mucharom said, BNI will finance and refinance projects in the Environmentally Friendly Business Activities (EFBA) category related to renewable energy, energy efficiency, waste processing into energy and waste management, natural resources use and sustainable land use.

“Funds from the Green Bond will also be channeled to land and water biodiversity conservation projects, environmentally friendly transportation, sustainable water and wastewater management, climate change adaptation, environmentally friendly buildings, and sustainable agriculture, taking into account OJK Regulation No. 60/POJK.04/2017 concerning Issuance and Requirements for Green Bonds,” he said.

Mucharom explained that as of the first quarter of 2022, BNI recorded a positive performance record, both from the expansion of the green portfolio as well as the implementation of ESG in all business lines. BNI's green portfolio reached Rp170.5 trillion. This value accounts for 28.9% of BNI's total loan portfolio.

“This green financing is mainly provided for the needs of the community's social economic development through MSME financing with a total portfolio of Rp 115.2 trillion. The rest is used for the needs of developing a green environmental ecosystem, new renewable energy of Rp 10.3 trillion, and pollution management of Rp 6.8 trillion, and water and waste management of Rp 23.3 trillion.


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