Bank Mandiri officially launched the initial offering of its Sustainability Bond Phase I 2025, targeting a nominal issuance of Rp5 trillion (02/12). This move aims to strengthen the bank’s funding structure, improve liquidity management, and expand intermediation capacity for strategic and sustainable financing.

Strategic Step to Support Economic Growth

The issuance is designed to broaden financing capacity that contributes to the economy and accelerates community-driven growth. Ari Rizaldi, Director of Treasury and International Banking at Bank Mandiri, said the sustainability bond demonstrates the company’s commitment to financing practices aligned with national sustainability and economic transition goals.

“This instrument is designed to provide financing increasingly relevant to the needs of economic transformation. With the right synergy, we want to ensure business growth aligns with sustainability and delivers value to society,” Ari stated in an official release.

Allocation for Environmentally and Socially Conscious Projects

Proceeds from the public offering, after deducting issuance costs, will be used to finance or refinance projects under the Environmental and Social Business Activity Framework. Ari noted that sustainable financing needs are rising as businesses adopt stricter ESG standards.

“This instrument is expected to expand green and social financing capacity, and strengthen liquidity intermediation so strategic financing can grow more inclusively and adaptively. This is important to accelerate community-driven economic growth,” he added.

Bond Structure and Investor Schedule

The sustainability bond will be issued in three series with fixed interest rates and tenors of 370 days, 3 years, and 5 years. Interest payments will be made quarterly through KSEI, with the first distribution scheduled for 19 December 2025. The initial offering ran from 28 November to 4 December 2025. The public offering is scheduled for 15–16 December 2025, followed by allotment on 17 December 2025, and listing on the Indonesia Stock Exchange on 22 December 2025.

High Rating Reflects Strong Financial Profile

The bond has received an idAAA rating from Pefindo, reflecting Bank Mandiri’s solid asset quality and risk profile. Ari stated that investor interest in sustainable instruments continues to grow alongside the increasing need for green and social financing in various sectors.

“With this issuance, Bank Mandiri further confirms its role as an intermediation driver supporting strategic and sustainable financing. The company hopes fund allocation will be fully utilized within a year, according to POJK 18/2023, providing wider economic impact and strengthening national financial resilience,” Ari explained.

“Through this corporate action, we promote more productive and sustainable financing so its benefits are tangible for businesses and society. We aim to ensure every strategic decision at Bank Mandiri delivers value to the national economy and strengthens inclusive growth momentum,” he concluded.

PHOTO: FREEPIK

This article was created with AI assistance.