BTN (BBTN) Issues Rp2 Trillion Social Bonds with Coupons up to 7.25%

PT Bank Tabungan Negara (Persero) Tbk. (BBTN) has once again issued social-oriented bonds with a value of up to Rp2 trillion. This issuance is part of the Sustainable Social Bond Public Offering (PUB) I BTN.

According to additional information released by the company on 29 September 2026, BTN is offering the Sustainable Social Bond I Bank BTN Phase II Year 2026 with a principal amount of Rp2 trillion. Previously, under the same PUB, BTN issued Phase I in 2025 with a value of Rp300 billion. The total target for funds raised through this PUB programme reaches Rp10 trillion.

In this second phase of issuance, BTN is offering two bond series. Series A features a fixed interest rate of 7.05% per annum with a tenor of 370 days and a principal value of Rp950 billion.

Meanwhile, Series B offers a fixed interest rate of 7.25% per annum with a three-year tenor and a principal value of Rp1.05 trillion. Interest payments will be made every three months.

The public offering period for the bonds runs from 30 September to 1 October 2026. Subsequently, allotment is scheduled for 2 October 2026, electronic distribution on 6 October 2026, and listing on the Indonesia Stock Exchange on 7 October 2026.

The first interest payment for both series will be made on 6 January 2027. Series A bonds will mature on 16 October 2027, while Series B bonds will mature on 6 October 2029.

The proceeds from the social bond issuance, after deducting issuance costs, will be used by BTN to finance or refinance social projects. The focus includes affordable basic infrastructure services, affordable housing, job creation, and the prevention and reduction of unemployment, including the financing of small and medium enterprises as well as micro-financing.

BTN has designated the portion for new financing as the majority of the fund usage, approximately 80%-100% of the total funds. Meanwhile, the refinancing portion is limited to a maximum of 20%.

In terms of credit rating, the Sustainable Social Bond I Bank BTN Phase II Year 2026 has received an idAAA or Triple A rating from PT Pemeringkat Efek Indonesia (Pefindo).

This social bond issuance is part of BTN’s efforts to raise funding specifically directed towards financing projects with social benefits, particularly affordable housing and financing for the small and micro-business segments.