PT PLN Batam's sustainability-linked loan (SLL), marks Indonesia's first-ever syndicated Sharia-compliant sustainability-linked financing, structured under Ijarah Muntahiyah Bittamlik (IMBT).

IMBT is a Sharia-compliant framework that combines leasing with ownership transfer, enabling lenders to purchase an asset, lease it to the client, and transfer ownership at the end of the term.

The financing underscores PLN Batam's sustainability performance target of increasing the share of renewable energy in the electricity grid across its service areas, in line with the company's Electricity Business Planning and Indonesia's energy transition agenda. The regional electricity company serves Batam Island and the surrounding areas in Indonesia's special economic zone.

CIMB Niaga, part of CIMB Group, one of Southeast Asia's major banking groups, acted as one of the joint mandated lead arrangers and bookrunners, as well as sustainability coordinator, for the IDR 3.3 trillion ($194.5 million) syndicated loan facilities.

The syndication also received a positive response from the secondary market, where CIMB Niaga and Maybank successfully sold portions of the facility to other new Indonesian-based syndicated lenders, including Bank DKI Syariah, BCA Syariah, and Bank Panin Dubai Syariah.