Jakarta, Indonesia, October
14, 2014—IFC, a member of the World Bank Group, has invested $100
million in PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) and mobilized
an additional $100 million to help the mid-sized Indonesian bank increase
lending to women entrepreneurs, low-income families, and micro and small
The financing package comprised a $50 million Indonesian rupiah equivalent
senior loan to BTPN and a $150 million rupiah equivalent financing in which
$50 million came from IFC and $100 million was mobilized from Sumitomo
Mitsui Banking Corporation (SMBC), which owns a 40 percent stake in BTPN.
The funding will help BTPN expand access to finance for the poorest segments
of Indonesia’s population, including an estimated two million women entrepreneurs,
and improve its ability to develop new products such as agricultural finance.
In Indonesia, women entrepreneurs and smaller businesses still face significant
challenges in obtaining access to credit. Over the next four years, BTPN
aims to provide 580,000 micro loans worth $2 billion, 30 percent of which
will go to women borrowers, who own or partly own more than a third of
small and medium enterprises in the country.
“In partnership with IFC, SMBC’s intention is to support BTPN to grow
its customer base faster by enhancing its liquidity position with lower
costs of funding,” said Masayuki Shimura, SMBC’s Managing Director, Head
of Asia Pacific Division and Emerging Markets Business Division. “The
latest financing demonstrates our continual commitment to working with
BTPN to create a leading mass-market and small-and-medium-enterprise banking
franchise in Indonesia.”
This is the third investment IFC has made in BTPN since 2009, when it provided
a $70 million loan to the bank for the first time. In 2012, IFC converted
part of the loan into BTPN shares. It also provided a local- currency loan
of $100 million to BTPN in the same year to fund the growth of its micro,
small and medium enterprise financing business.
“BTPN is our strategic partner in supporting the sustainable economic
growth of Indonesia,” said IFC Indonesia’s Country Manager Sarvesh Suri.
“With broader access to financial services, women and rural entrepreneurs
will be able to grow their businesses and better support their families.
This will help alleviate poverty and ensure the sharing of wealth across
a wider segment of the society.”
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.
About Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation (SMBC) was established in April 2001
through the merger of two leading Japanese banks: The Sakura Bank Limited
and The Sumitomo Bank Limited. Sumitomo Mitsui Financial Group Inc. was
established in December 2002 as a bank holding company, and SMBC became
a wholly owned subsidiary of SMFG. SMBC’s competitive advantages include
a large customer base, the quick implementation of strategies, and an extensive
lineup of financial products and services that leverage the expertise of
strategic Group companies in specialized areas. SMBC, as a core member
of SMFG, works together with other members of the Group to offer customers
highly sophisticated, comprehensive financial services.