A teller counts US dollar notes at a Bank Mandiri's branch in Jakarta on March 13, 2020. (Antara Photo/Aprillio Akbar)

Mandiri Raises $300m From Its First Green Bonds


APRIL 14, 2021

Jakarta. Bank Mandiri, Indonesia's second-largest lender by asset, has raised $300 million from its first green bond to finance environmentally and socially focussed projects, the lender said in a statement on Tuesday. 

The securities, called Sustainability Bond, has a five-year tenor with a coupon of 2.00 percent. Bank Mandiri appointed Deutsche Bank, HSBC, and Mandiri Securities as joint lead managers for the bond issuance. 

Bond-rating agencies Moody's Investors Services and Fitch Ratings assigned investment-grade ratings to the bond, reflecting high investor confidence in the securities. The bonds got a Baa2 rating from Moody's and BBB- from Fitch. 

Investors booked orders of more than $2.5 billion during the bond's book-building process, an oversubscription of more than 8.3 times the planned size. 


"This shows the positive perception of foreign investors on the performance and business prospects of Bank Mandiri in the future," Panji Irawan, Mandiri's treasury and international banking director, said in the statement. 

He said the bond had met the Sustainability Bond Guidelines standards of the International Capital Market Association (ICMA), which is in line with Asean Sustainability Bond Standards, Green Bond Standards, and Social Bond Standards.

"Bank Mandiri has committed to implementing sustainable finance practices by compiling the action plan implemented through 3 strategic pillars. The three pillars are sustainable banking, sustainable operations, and sustainable corporate social responsibility and financial inclusion," Panji said in the statement. 

The bonds would go toward Mandiri's sustainable banking, including providing financing to sustainable sectors such as new and renewable energy or social projects, especially for the micro, small and medium enterprises (MSMEs) segment, Panji said. 

Panji said Mandiri hopes to continue to support government programs to explore and exploit the considerable potential of new and renewable energy in Indonesia and support sustainable development goals (SDG).