01 Nov 2021

Bank BTPN Disburses Rp1.06 Trillion 'Green' Loans for the 'Green' Building Project in Jakarta

Jakarta, XX November 2021 – PT Bank BTPN Tbk (“Bank BTPN”) provided PT Kepland Investama with a green loan facility of Rp. 1.06 trillion as a manifestation of Bank BTPN's commitment to sustainable financing that takes into account environmental, social and governance aspects.

Bank BTPN, as the sole lender, and property investment company PT Kepland Investama signed a green loan facility agreement (“Green Loan”) with a tenor of three years on 19 October 2021.

This Green Loan facility in Rupiah is one of the first in the Indonesian market.

PT Kepland Investama, a subsidiary of Keppel Land Limited headquartered in Singapore, will utilize all of Bank BTPN's green loan facilities for credit refinancing used for the construction of the International Financial Centre (IFC), Tower 2 on Jl. Jend. Sudirman, Jakarta.

Strategically located in the heart of the Sudirman central business district, IFC Tower 2 offers over 50,200 sm of prime Grade A office space and is the first development in Indonesia to have attained the highest BCA Green Mark Platinum Award by the Building and Construction Authority of Singapore (BCA) for the incorporation of safety and sustainability concepts within the development.

“The provision of this green loan facility demonstrates Bank BTPN's ability to conduct loan transactions that consider environmental, social and governance aspects. This transaction will also increase customer confidence in Indonesia and the surrounding region in Southeast Asia in the ability of Bank BTPN as a green loan coordinator," said Nathan Christianto, Head of Wholesale Banking at Bank BTPN.

In addition to providing green loan facilities, Bank BTPN, as well as the parent company Sumitomo Mitsui Banking Corporation (SMBC), assists in assisting Kepland Investama in implementing the green loan framework ("Green Loan Framework") and Green Loan documentation so that it is in line with green lending principles ("Green Loans"). Principles”) established by the Loan Market Association and the Asia Pacific Loan Market Association (“APLMA”).

“The provision of this green loan facility is in line with SMBC's initiative in its efforts to help mitigate the impacts of climate change through the SMBC GREEN×GLOBE 2030 (GG2030) program, a long-term plan to reduce greenhouse gas emissions to achieve net zero in its group operations by 2030, ' added Nathan.

“In line with Keppel’s Vision 2030, Keppel Land places sustainability at the core of our strategy. We are pleased to secure this green loan for the credit refinancing of International Financial Centre Jakarta Tower 2, Indonesia’s first BCA Green Mark Platinum development. This reflects our focus on developing and managing low-carbon, resource-efficient buildings, as we deliver Keppel Land’s vision to be a leader in redefining urban spaces for a sustainable future,” said Samuel Ng, President (Indonesia), Keppel Land.

Prior to the merger between PT Bank Tabungan Pensiunan Nasional and PT Bank Sumitomo Mitsui Indonesia (“SMBC Indonesia”) in 2019, SMBC Indonesia had started financing green projects, one of which was the Hasang Hydroelectric Power Plant project in Toba Samosir, North Sumatra, which was awarded the 'Renewable' award. Energy Deal of The Year', or best renewable project, by The Asset in 2018.

In addition, previously Bank BTPN and its parent company SMBC also financed the Sidrap Bayu Power Plant project—the first wind farm in Indonesia with a capacity of 75 MW—the Asahan Hydroelectric Power Plant, the Sarulla Geothermal Power Plant, and the Cirata Floating Solar Power Plant.

The Cirata Floating Solar Power Plant is the first large-scale solar power project in Indonesia. For the green financing provided, Bank BTPN and its parent company SMBC received three awards from The Asset Triple A Infrastructure Awards 2021 for 'Renewable Energy Deal of The Year-Wind' for project financing in Sidrap, 'Renewable Energy Deal of The Year-Hydro'. ' for project financing in Asahan, and 'Project Finance House of the Year'.

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