Istanbul, Turkey, October 9, 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
”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.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
About PT Bank Tabungan Pensiunan Nasional Tbk
PT Bank Tabungan Pensiunan Nasional Tbk (BTPN), a medium size public bank
founded in 1958, has its business focus in mass market of micro banking
and pensioners. It has more than 800 branches across in Indonesia.
The bank has total assets of Rp 18.2 trillion with very strong CAR of 23.3%
and has the lowest NPL (0.55% gross) in the industry. It is known as a
reputable medium size public bank with one of the best financial performance
in industry bank and is rated A+ Positive Outlook recently by FicthRatings.