14-07-2023 | By : Arkora Hydro
The issuance of the green bond is ARKO's commitment to supporting and developing environmentally friendly business activities (KUBL). This corporate action also strengthens ARKO's position as a market leader in the implementation of environmental, social and governance (ESG) in the Indonesian capital market.
ARKO will issue this green bond in three series, with tenors each of one year, three years and five years. "The size of the green bond coupon will be determined later," said ARKO President Director Aldo Henry Artoko, Friday (14/7).
Aldo said that the risk aspect in this green bond is relatively well maintained, as can be seen from the idA(pg) - (single A- partially guaranteed ) rating for environmentally friendly bonds. This shows ARKO's strong ability to meet long-term financial obligations.
President Director of PT Indonesia Infrastructure Finance (IIF) Reynaldi Hermansjah welcomed the issuance of these bonds, and hoped that the issuance of green bonds could realize green financial inclusion in Indonesia. "We are very happy and optimistic that the bonds issued by ARKO will receive a very good response from the public," said Reynaldi.
This is because the issuance of green bonds is ARKO's commitment to involve wider community participation in supporting the green industry through investment instruments.
Meanwhile, IIF through its funding uses a credit enhancement scheme given to ARKO in the construction of several green projects based on renewable energy , namely the Mini Hydro Power Plant (PLMTH)
The initial offering or bookbuilding period is open from 7 July 2023 to 21 July 2023. ARKO targets that the green bonds will be listed on the Indonesia Stock Exchange (BEI) on 11 August 2023
As an illustration, ARKO develops and operates a mini hydro power plant project. Currently, ARKO has two power plants with a total capacity of 17.4 megawatts (MW) and two projects under construction with a total capacity of 15.4 MW.
ARKO also has affiliated companies that provide construction services for its projects and for operations and maintenance services. As of 31 December 2022, shareholders consisted of PT Arkora Bakti Indonesia (47.52%), PT Energia Prima Nusantara (26.55%), part of PT United Tractors Tbk ( UNTR ), ACEI Singapore Holdings Private Ltd (10.07 %), and the public at 15.85%.
Reporter: Akhmad Suryahadi
Editor: Wahyu T.Rahmawati
Source: Kontan.co.id