Vale Secures ESG-Based Syndicated Loan Worth IDR 12.96 Trillion

PT Vale Indonesia Tbk (PT Vale) has obtained a Sustainability-Linked Loan (SLL) facility worth US$750 million, equivalent to approximately IDR 12.96 trillion (assuming an exchange rate of IDR 17,286 per US dollar), with an additional greenshoe option of US$250 million or around IDR 4.32 trillion.

This syndicated loan facility is the first for PT Vale and strengthens the company’s funding structure amid the growing global need for critical minerals to support the energy transition.

The loan is supported by a syndicate of 14 international banks and was oversubscribed by 1.7 times, reflecting high confidence in the company’s business fundamentals and sustainability strategy.

With the global acceleration of electrification and renewable energy development, demand for nickel as a key component in electric vehicle (EV) batteries and energy storage continues to rise. According to projections from the International Energy Agency, global battery storage capacity is expected to need to increase 14-fold, while EV battery demand is projected to rise seven-fold by 2030.

In this context, PT Vale is strategically positioned as a nickel producer with relatively lower carbon intensity, supported by the use of renewable energy from three integrated hydroelectric power plants (PLTA) in its operations. The company is also enhancing the capacity and reliability of PLTA infrastructure to support the gradual electrification of operations.

This SLL facility is structured in reference to the Sustainability-Linked Financing Framework, which aligns with international practices in sustainability-based financing. The key performance indicators (KPIs) used include reductions in carbon emission intensity and increases in renewable energy usage.

Both KPIs have received a “strong” rating from an independent Second Party Opinion, assessing alignment with global targets to limit temperature rise in line with the Paris Agreement’s 1.5°C pathway, as referenced in independent studies, as well as contributions to Indonesia’s Nationally Determined Contribution (NDC). This assessment also ensures significant performance improvements compared to a business-as-usual scenario.

This sustainability-based syndicated loan represents an important milestone for PT Vale, marking the company’s first step into the syndicated loan market. This move aligns with the company’s increasingly robust growth trajectory, driven by the disciplined, measured execution of strategic projects in Indonesia, grounded in sustainability principles.

PT Vale’s President Director and CEO, Bernardus Irmanto, stated that this facility reflects the company’s commitment to integrating sustainability aspects into strategic decision-making.

“This facility marks an important step in our journey to align financing strategies with the company’s decarbonisation agenda and long-term growth. We are committed to continuing to deliver high-quality nickel with a lower carbon footprint, while supporting the development of the national downstreaming industry and the global energy transition,” he said on Thursday (23/4/2026).

Regarding fund utilisation, this facility will support the company’s strategic project development. In 2026, approximately 50% of the funds will be allocated to the IGP Pomalaa project, around 30% to the IGP Morowali project, and about 20% to the IGP Sorowako Limonite development. In 2027, funding will focus on continuing these projects as well as fulfilling participating rights in joint venture projects.

As part of its commitment to creating shared value, PT Vale will also channel the financial benefits obtained from sustainability performance-based margin adjustments into community development programmes. This approach ensures that achieving ESG targets not only impacts company operations but also provides tangible contributions to improving community welfare in the areas surrounding operational sites.

This approach is also supported by banking partners who see the importance of integrating sustainability into financing structures. UOB Indonesia’s Director of Wholesale Banking, Harapman Kasan, stated that sustainability-based financing is becoming increasingly relevant in supporting industrial sector transformation.

“This transaction reflects our approach to supporting clients through financing structures aligned with measurable sustainability targets, while strengthening Indonesia’s role in the global energy transition agenda,” he said.

DBS’s Global Head of Metals & Mining, Institutional Banking, Mike Zhang, added that the mining sector plays a crucial role in ensuring the energy transition proceeds responsibly and sustainably.

Meanwhile, PT Bank Mizuho Indonesia’s President Director, Ken Matsuo, stated that energy is the backbone of Indonesia’s economy. Therefore, they are proud to support PT Vale’s inaugural syndicated loan facility.

“Amid market volatility, the high interest from participating banks and the oversubscription demonstrate strong confidence in PT Vale’s business model. We view the integration of ESG into financing structures like this as an important step in supporting a sustainable energy transition,” he said.