JABAR EKSPRES – Citi Indonesia acted as joint global coordinator for the marketing phase and joint lead manager in the issuance of PT Pertamina Geothermal Energy Tbk’s (PGE) inaugural green bond worth USD 400 million with a five-year tenor.
Citi Indonesia CEO, Batara Sianturi said in an official statement, in Jakarta, on Tuesday (5/30), that the transaction is the first green bond issued to a corporate client in the ASEAN region since 2022, demonstrating Pertamina Geothermal Energy’s (PGE) commitment to lead the green energy sector in Indonesia by 2030.
He continued, this is also in line with Citi Indonesia’s commitment to achieve US$1 trillion in sustainable finance by 2030, which is in line with the UN Sustainable Development Goals (SDGs) and the company’s Sustainable Development Strategy by 2025.
“Citi continues to demonstrate its leadership in the green bond market, while responding to increasing investor demand for sustainable finance products globally,” Batara said.
Batara explained that the funds raised from the green bond issuance will be used to pay off the bridging loan, which was previously used to refinance the shareholder loan in order to finance eligible green projects.
In Indonesia, Batara explained that Citi Indonesia has been involved in several sustainable finance transactions, including the provision of financing facilities for Bank Tabungan Negara (BTN) worth US$100 million for the construction of housing for low and middle income families.
Then, the inaugural Sustainable Supply Chain Finance (SSCF) Program for the Henkel Indonesia group with a US$3 billion green sukuk offering in June 2021 for the Indonesian government which includes 30-year green bonds.
Furthermore, Citi Indonesia led a $4.2 billion dual currency global bond offering to support the Indonesian government in its recovery efforts following the COVID-19 pandemic.
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