Indonesia’s Sarana Multi Infrastruktur (SMI), a state-owned infrastructure financing firm, said on Tuesday it had issued a combined 1.5 trillion rupiah ($104.6 million) via green bonds and sukuk, tapping into environmentally-minded investors.
SMI, which is supervised by the Ministry of Finance, raised 500 billion rupiah in green bonds and 1 trillion rupiah in sukuk, with each programme allowing issuance of up to a maximum 3 trillion rupiah.
The deal follows efforts by Indonesia to develop so-called green finance and boost use of clean energy sources in one of the world’s largest emitters ofgreenhouse gases.
The company said it had been accredited by the multilateral Green Climate Fund, which requires clear management and reporting on all climate-related financing.
“The proceeds from the bonds will be used to fund projects focused on sustainability, including in renewable energies, environmentally friendly public transports and clean water management,” SMI head Emma Sri Martini said in a statement.
SMI‘s green bond and sukuk framework was assessed by the Centre for International Climate and Environmental Research (CICERO), a non-profit which specialises in green finance.
SMI has identified seven existing projects eligible for refinancing under its green issuance programme, which include low emissions light rail transportation, mini hydro power plants and water treatment and irrigation systems.
In February, Indonesia became the first Asian country to sell “green“ bonds internationally in a $1.25 billion deal.