PT Pollux Hotels Group is issuing its first Sustainability-Linked Bond (SLB) at up to Rp500 billion (US$32 million), backed by an unconditional and irrevocable guarantee from the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB).

The bond, currently in its bookbuilding phase until November27, 2025, has received an idAAA(cg) rating from local credit rating agency Pefindo reflecting the highest credit quality supported by CGIF’s full corporate guarantee on both coupon and principal payments.

Founder of Pollux Hotels Group, Po Sun Kok, said proceeds from the issuance would be allocated to two strategic priorities.

“The first is improving sustainability performance across our properties, including solar cell installation and recovered water systems to reduce electricity and water consumption,” Po said during a press conference in Jakarta on Tuesday, November 25, 2025.

“The second is refinancing part of our existing credit facilities to create a healthier and more efficient capital structure,” he added.

Pollux manages a property portfolio valued at more than Rp10 trillion, with assets in Semarang, Cikarang, Batam and Lombok. The idAAA rating strengthens its position as a hotel operator with solid financial stability and strong corporate governance credentials.

Two tranches on offer

During bookbuilding, the company is offering two series of bonds. Three-year tenor coupon ranging from 5.35%–5.85percent, and five-year tenor coupon ranging from 5.75–6.25percent.

Korea Investment and Sekuritas Indonesia acts as the lead underwriter, while Bank BJB serves as trustee.

Sustainability targets

The issuance forms part of Pollux’s long-term plan to enhance its environmental, social and governance (ESG) framework. The company has set key performance indicators aligned with the Financial Services Authority (OJK) regulation POJK 18/2023 on sustainability performance targets.

Key Performance Indicators include Energy efficiency improvements, Carbon emission reduction, Greater use of renewable energy, and Improved water management and leak reduction.

Between 2025 and 2029, Pollux plans to install 40 kWp of solar capacity, projected to cut emissions by 184,320 kgCO₂e, and upgrade cooling systems for energy efficiency. The company also targets reducing water leakage by up to 100percent by 2029.

Pollux director for social and environmental compliance, Diana Jo, said the bond proceeds would be allocated prudently. “Funds will be used for partial repayment of investment credit facilities and working capital needs, including utilities, maintenance and carbon reduction programs such as solar cell installation and improved recovered water technology,” she said.

Full investor protection

CGIF Vice President for Operations, Anuj Awasthi,emphasized that the guarantee structure provides “maximum protection” for bondholders.

“In the event of a payment default by the issuer either on coupons or principal investors and the trustee have the right to submit a claim directly to CGIF. We will honor that claim in full,” he said.

Awasthi noted that CGIF applies strict eligibility standards when selecting issuers to guarantee, describing Pollux as having “a strong business and financial profile” with the capacity to uphold its payment commitments throughout the bond’s life.

“From a risk perspective, the probability of default is very low. But even if it occurs, investors remain fully protected because CGIF acts as the ultimate guarantor,” he added.