IFC, BTPN Increase Access to Finance for Low- income Indonesian Households, Ente...

Oct 2009
Istanbul, Turkey, October, 09 2009 - IFC, a member of the World Bank Group, has agreed to provide up to the Rupiah equivalent of $70 million in financing for Indonesia’s PT Bank Tabungan Pensiunan Nasional Tbk that could help deliver essential financial services to more than a million lower-income people and smaller businesses.

IFC’s financing package will comprise a $15.9 million loan that will be convertible into equity and a $54.1 million senior loan.  As part of the agreement, IFC also will help BTPN raise additional funding over the next three years.

BTPN launched its microfinance business in November 2008, and is now serving close to  70,000 customers, most of whom are small traders and kiosk owners at traditional markets.  As BTPN aims to build its branch network to 550 outlets by the end of 2009, IFC’s financing will allow the bank to provide financial services to more customers a year across Indonesia.

“We are delighted with the new partnership with BTPN,” said Rashad Kaldany, IFC Vice President for East and South Asia.  “This strategic investment shows our ongoing commitment to building the capacity of leading financial institutions in Indonesia to better serve micro, small, and medium enterprises and low-income households.” Kaldany also noted that IFC’s support to BTPN will increase access to financial services, creating opportunity for many poorer people to improve their lives.

Dr. Fuad Rachmany, Chairman of Capital Market and Financial Institution Supervisory Agency,  who witnessed the signing ceremony representing the Minister of Finance of Indonesia during the IMF – Worldbank Group Annual Meeting said, ‘’ Our government continues to encourage financial institutions and banks to open up wider access of financing to the micro, small, and medium enterprises so we really appreciate the efforts of BTPN and IFC”.

”We are pleased with this strategic cooperation between IFC and BTPN as this will provide BTPN with more options for long term funding after our recent rupiah denominated bond issuance’’, said Jerry Ng, President Director of BTPN.  “We see this as an important  milestone for BTPN as this cooperation demonstrates the commitment of BTPN and IFC  in providing wider access of financing to the micro and small enterprises as well as pensioners which in turn will benefit our country’s economic development. We are also very honored to have Dr Fuad Rachmany with us in this special day”.

Microfinance is a critical tool in the fight against poverty.  Access to a range of microfinance services—savings, loans, and money transfers—enables poor families to invest in enterprise and better nutrition, improved living conditions, and the health and education of their children.  IFC provides advice and investments to the microfinance sector in developing countries by focusing on viable microfinance institutions that can scale up and respond to unmet demand.

Source : IFC

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