Indonesia: IFC Lends $100 Million to BTPN to Provide Access to Finance for Low-I...

Oct 2012
Indonesia, October, 16 2012 - IFC has agreed to provide a loan of $100 million equivalent in Rupiah to Bank Tabungan Pensiunan Nasional Tbk (BTPN) to provide greater access to financing for small firms and low-income households such as pensioners, micro and small enterprises, low-income earners and women entrepreneurs.

IFC’s investment will support BTPN in providing capital to Indonesia’s low-income segment and small firms so that they can grow their businesses and support their families.

”We are pleased with this strategic cooperation between IFC and BTPN as it will support BTPN in achieving its vision to be the best bank in the mass market segment, making a difference in the lives of millions’’, said Jerry Ng, President Director of BTPN. “We see the cooperation as an important milestone as it demonstrates BTPN’s and IFC’s commitment to provide wider access to financing to the benefit our country’s economic development.”

This is IFC’s second financing for BTPN. In 2009, IFC provided a convertible loan of $15.7 million equivalent in Rupiah and a senior loan of $54.3 million equivalent in Rupiah. IFC has converted $15.7 million of the convertible loan into equity in early 2012, becoming a 3 percent shareholder of the bank.

“Making financial products accessible to micro and small enterprises plays a critical role in Indonesia’s economic growth,” said Sarvesh Suri, IFC’s country manager for Indonesia. “Expanding access to financial services will increase rural incomes and promote sustainable urbanization.”

Microfinance is an essential tool in the fight against poverty. Easing access to a range of microfinance services—savings, loans, and money transfers—enables poor families to invest in their small-scale enterprises, access better welfare, and improve their living conditions. IFC provides advice and investments for the microfinance sector in developing countries by focusing on viable institutions that can scale up and respond to unmet demand.

Source : IFC

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