BRI Becomes First in Indonesia to Issue IDR 5 Trillion Social Bond to Support Inclusive, Sustainable Financing

Rhea-AI Summary

Bank Rakyat Indonesia (BKRKY) has made history as the first Indonesian bank to issue a Social Bond, raising IDR 5 trillion with an impressive 1.31x oversubscription. The bond, rated Triple A (idAAA) by PEFINDO, is part of a larger IDR 20 trillion Sustainable Public Offering Program.

The Social Bond is structured in three series with varying tenors and interest rates: Series A (2-year, 6.45%), Series B (3-year, 6.55%), and Series C (5-year, 6.60%). The issuance aims to strengthen BRI's funding structure, diversify wholesale funding sources, and demonstrate the bank's commitment to ESG-oriented financing and financial inclusion.

Positive

• First bank in Indonesia to issue a Social Bond, demonstrating market leadership
• Strong market demand with 1.31x oversubscription (IDR 6.57 trillion vs IDR 5 trillion target)
• Triple A (idAAA) rating from PEFINDO indicates strong creditworthiness
• Part of larger IDR 20 trillion Sustainable Public Offering Program showing long-term commitment

Negative

• Higher interest rates ranging from 6.45% to 6.60% represent significant cost of capital
• Quarterly coupon payments and bullet repayment structure may create future cash flow pressure

JAKARTA, Indonesia, June 25, 2025 /PRNewswire/ -- PT Bank Rakyat Indonesia (Persero) Tbk, (IDX: BBRI) has officially issued its first Sustainable Social Bond Phase I Year 2025, valued at IDR 5 trillion. The issuance received strong interest with an oversubscription of IDR 6.57 trillion—1.31 times the initial target.

This bond is part of BRI's Sustainable Public Offering Program I, which aims to raise a total of IDR 20 trillion. With this issuance, BRI becomes the first bank in Indonesia to issue a Social Bond.

The agreement signing was attended by BRI President Director Hery Gunardi, Director of Treasury & International Banking Farida Thamrin, Director of Operations Hakim Putratama, joint lead underwriters, and supporting institutions.

BRI President Director Hery Gunardi explained that the bank's decision to issue a Social Bond stems from the limited availability of socially focused securities instruments in Indonesia. "This also serves as concrete proof of BRI's commitment to maintaining ESG-oriented financing," said Hery.

He further stated that the Social Bond issuance is aligned with the bank's strategy to strengthen its funding structure through the diversification of wholesale-based funding sources. "This move also serves as part of the company's strategy to broaden access to more competitive and sustainable capital markets," he added.

The bond has received a Triple A (idAAA) rating from the Indonesian credit rating agency PEFINDO and is offered in three series:

Series A: 2-year tenor with a fixed interest rate of 6.45% per annum

Series B: 3-year tenor with a fixed interest rate of 6.55% per annum

Series C: 5-year tenor with a fixed interest rate of 6.60% per annum

Issued through a bookbuilding process, the bond involves prominent underwriters including PT BRI Danareksa Sekuritas, PT Trimegah Sekuritas Indonesia Tbk, PT Mandiri Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas, and PT Bahana Sekuritas. The Social Framework was developed with ESG Coordinator Bank DBS Indonesia.

The bond will be listed on the Indonesia Stock Exchange (IDX) and registered with KSEI. Coupon payments will be made quarterly, with a full principal repayment (bullet payment) at maturity.

Hery concluded that this issuance reinforces BRI's commitment to expanding financial inclusion and empowering communities through sustainable financing.

For more information about BANK BRI, visit www.bri.co.id

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What is the size and structure of BRI's (BKRKY) first Social Bond issuance?

BRI issued a IDR 5 trillion Social Bond in three series: Series A (2-year, 6.45%), Series B (3-year, 6.55%), and Series C (5-year, 6.60%).

How was the market response to BRI's Social Bond offering?

The bond received strong market interest with an oversubscription of IDR 6.57 trillion, representing 1.31 times the initial target amount.

What is the credit rating of BRI's 2025 Social Bond?

The bond received a Triple A (idAAA) rating from Indonesian credit rating agency PEFINDO.

What is the purpose of BRI's Social Bond issuance?

The bond aims to strengthen BRI's funding structure, diversify wholesale funding sources, and demonstrate commitment to ESG-oriented financing and financial inclusion.

How will BRI's Social Bond payments be structured?

The bond will feature quarterly coupon payments with a full principal repayment (bullet payment) at maturity.