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PT Bank Rakyat Indonesia's Groundbreaking Move in Sustainable Financing

On June 25, 2025, PT Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) proudly announced the issuance of its inaugural Sustainable Social Bond, valued at IDR 5 trillion. This monumental step marks a significant milestone, as Indonesia's first bank to navigate the social bond landscape. The issuance received overwhelming response, with subscriptions totaling IDR 6.57 trillion, surpassing the initial target by 1.31 times.

A Step Towards Financial Inclusivity

The issuance falls under BRI's Sustainable Public Offering Program I, which aims for an ambitious total of IDR 20 trillion. This initiative underlines the bank's unwavering commitment to environmental, social, and governance (ESG) principles, particularly in a market where socially focused securities are scarce. According to BRI’s President Director, Hery Gunardi, this move showcases BRI’s dedication to ESG-oriented financing, emphasizing the bank's shift towards expanding access to sustainable financial products.

Strengthening Funding Structures

Gunardi articulated that the issuance is a strategic endeavor to diversify their funding structure by tapping into wholesale-based funding sources. He further stated that this strategy would contribute to a more competitive capital market, enhancing the operational landscape for financial institutions in Indonesia.

Details of the Social Bond

The bond is issued in three different series, all of which have been rated Triple A (idAAA) by the Indonesian credit rating agency, PEFINDO. Here are the details of each series:

• - Series A: 2-year tenor with an interest rate of 6.45% per annum.
• - Series B: 3-year tenor with an interest rate of 6.55% per annum.
• - Series C: 5-year tenor with an interest rate of 6.60% per annum.

In this issuance, BRI partnered with prominent underwriters such as PT BRI Danareksa Sekuritas and PT DBS Vickers Sekuritas Indonesia, among others. The Social Framework was crafted in collaboration with the ESG Coordinator from Bank DBS Indonesia, ensuring that the bond aligns with ecological and social goals.

Future Commitments

This initiative resonates profoundly with BRI's overarching strategy to foster financial inclusion and support community empowerment through sustainable financing. The bond will be listed on the Indonesia Stock Exchange (IDX) and registered with KSEI, with coupon payments occurring quarterly. At maturity, investors will receive a full principal repayment via a bullet payment.

BRI’s strong commitment to sustainable financing is likely to inspire other financial institutions within Indonesia and across the region to follow suit. Hery Gunardi concluded that this bond issuance reinforces the bank's mission to enhance financial access and support socio-economic progress in Indonesia.

Conclusion

In summary, PT Bank Rakyat Indonesia's successful launch of the IDR 5 trillion Social Bond not only highlights its leadership in sustainable finance within Indonesia but also sets a precedent for future green initiatives. As the financial landscape continues to evolve, BRI stands at the forefront of socially responsible financing, echoing the needs of the communities it serves. For more information on BRI's initiatives, please visit BRI.