JAKARTA, December 26, 2022 – PT Bank BTPN Tbk (Bank BTPN) and Sumitomo Mitsui Banking Corporation (SMBC) have agreed to provide $93,75 million, or Rp1,46 trillion, in green financing for PT Perusahaan Listrik Negara (PLN).
The facility is part of a $750-million syndicated loan agreement, which was inked on Friday (12/23/2022) by all creditors and the state-owned power firm. Bank BTPN and SMBC collectively act as coordinating mandated lead arranger and bookrunner, and green loan coordinator, in the syndication.
Bank BTPN and SMBC provide the green financing facility to support PLN’s energy transition programs to renewable energy.
“We are committed to disbursing sustainable financing for sustainable businesses to support the government’s sustainable development programs,” said Bank BTPN Head of Wholesale and Commercial Banking Nathan Christianto in Jakarta.
“We design our green financing products, in part, for corporate customers that support sustainability through renewable energy projects, among other initiatives, so together we reach net-zero emissions,” he added.
Apart from the syndicated loan, Bank BTPN disbursed Rp6.7 trillion in sustainability-linked loans in accordance with the Financial Services Authority’s (OJK’s) definition as of September-end, up 52% from Rp4,4 trillion in the same period last year.
In addition, Bank BTPN also provides green financing for other business sectors, such as environmentally friendly transportation, natural resource management and sustainable use of land, energy efficiency, and development of environmentally friendly buildings.
In 2021, Bank BTPN channeled Rp1,06 trillion green financing to PT Kepland Investama for the latter’s credit refinancing for the development of International Financial Center (IFC), Tower 2, on Jl. Jend. Sudirman, Jakarta.
Bank BTPN adopts two principles in disbursing green loans, namely SMBC’s “Roadmap Addressing Climate Change” and OJK’s regulation POJK No. 51/POJK.03/2017 on the Implementation of Sustainable Financing for Financial Services Institutions, Issuer Companies, and Public Companies.
As one of the Net-Zero Banking Alliance members, SMBC runs “Roadmap Addressing Climate Change” to align loan and investment portfolios with its 2050 zero-emission programs. SMBC is also committed to reaching achieving net-zero emissions through group operations by 2030 and to disbursing loans of up to ¥30 trillion by 2030.
“In line with our commitments, we hope that Bank BTPN’s green financing can support the government’s programs in achieving sustainable development goals. With such a great potential to keep growing, green financing is a substantial aspect in creating a sustainable economy that has seen ever growing demand,” said Nathan.