This green financing is a syndicated loan worth $750 million, intending to boost PLN’s activity in realizing a renewable energy transition.
Heaptalk, Jakarta — PT Bank Tabungan Pensiunan Nasional Tbk (BTPN), together with Sumitomo Mitsui Banking Corporation (SMBC), has agreed to disburse green financing worth USD93.75 million, or nearly Rp1.46 trillion, dedicated to the State Electricity Company (PLN).
This financing facility is part of a syndicated loan worth US$750 million, signed by the creditors and PLN parties last Friday (12/23), to expedite the PLN’s performance in the energy transition toward renewable energy.
As affirmed by the Head of Wholesale and Commercial Banking of Bank BTPN, Nathan Christianto, the company aims to distribute sustainable financing for environmentally sound business activity as the contribution form of the government program in accelerating the sustainable development target in the country.
“We have designed this green financing product for corporate customers who support sustainability, specifically for renewable energy projects, with equivalent objectives in reaching Net Zero Emission,” added Nathan.
Regardless of this syndicated loan, Bank BTPN has also dispensed loans for an environmentally sound agenda following the Financial Authority Services (OJK) interpretation worth US$427 million, or approximately Rp6.7 trillion per September this year, elevating 52% from the former of US$281 million in a similar period of 2021.
Also, this banking corporate has delivered green financing worth US$67 million devoted to PT Kepland Investama in 2021. This credit refinancing is utilized to construct the International Financial Centre (IFC).
Besides renewable energy, BTPN company also established this green financing scheme in several sectors, spanning environmentally friendly transportation, biological natural resources and sustainable land use, energy efficiency, and environmentally sound buildings.
“Aligned with this goal, we hope the green financing disbursement would expedite the sustainable development target initiated by Indonesia’s government. With the immense potential to continue to grow, the green financing method is one of the most critical funding aspects to create a more sustainable economy that is increasingly becoming a demand,” concluded Nathan.
This strategic initiative green financing distribution is based on two primary points, including a program of SMBC entitled Roadmap Addressing Climate Change and POJK Number 51/POJK.03/2017 related to the Sustainable Financial Implementation for the Financial Services Institutions, Issuers, and Public Companies.
As additional information, the Roadmap Addressing Climate Change program initiated by SMBC, as the Net-Zero Banking Alliance, aims to harmonize its loan and investment portfolios with a zero-emission plan by 2025. In addition, this multinational banking company also emphasizes realizing a net zero through its operations as a group by 2030 through sustainable financing disbursement with a targeted value of US$225 billion by 2030.
