Abstract :

This study analyzes the development of sustainable bonds among IDX-listed companies in the post-Covid period of 2022 and identifies the factors influencing sustainable bond yields. The research observes 749 sustainable bonds issued by 93 IDX-listed companies. Multiple regression analysis is employed to explore the relationship between the bond yield as the dependent variable and sustainability factors—Number of Company-Supported SDGs, ESG Risk Ratings, CSR Funds, and GHG Emissions—as independent variables, along with control variables including three bond characteristics (Modified Duration, Issuance Size, Term to Maturity) and eight company characteristics (Board of Commissioners and Directors Diversity, Company Size and Age, ROA, Current Ratio, Industry, State-owned Enterprise status). The findings reveal positive correlations between the Number of Company-Supported SDGs and ESG Risk Ratings with bond yields, while CSR Funds and GHG Emissions show negative correlations with bond yields, indicating complex relationships between sustainability performance and sustainable bond yields. The study results suggest strategic recommendations for companies, investors, policymakers and regulatory bodies, as well as educational institutions to enhance the effectiveness and appeal of sustainable bonds in Indonesia.

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Keywords :

Bond Yields, CSR Funds, ESG Risk Ratings, GHG emissions, IDX-Listed Companies, SDG’s., Sustainable Bonds

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