ADB supports Indonesia’s first social bond and sukuk issuance

The Asian Development Bank (ADB) has supported Indonesia’s first social bond and sukuk issuance.

State-owned secondary finance company PT. Sarana Multigriya Finansial (SMF) raised 500 billion rupiah ($32.4 million) through a social bond and 200 billion rupiah ($13 million) through a social sukuk on 22 December 2023. Both instruments were listed on the Indonesia Stock Exchange on 27 December 2023. This is part of an issuance program that allows PT SMF to raise up to 8 trillion rupiah in future bond issuances and 1.5 trillion rupiah in future sukuk issuances to finance new and existing projects with positive social outcomes such as affordable housing.

These instruments were issued under the International Capital Market Association’s Social Bond Principles and the Association of Southeast Asian Nations (ASEAN) Capital Markets Forum’s Social Bond Standards. This milestone also represents the first issuance of labeled social bonds and sukuk in line with the requirements for sustainability-related bonds and sukuk set by the Financial Services Authority.

Source: Devdiscourse