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IFC and SMBC Help BTPN Expand Financing for Micro and Women Entrepreneurs in Indonesia


In Jakarta, Indonesia:
IFC
Shinta Saraswati

Phone: +62 21 2994-8067

E-mail: ssaraswati@ifc.org


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 businesses.

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.”


About IFC

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.
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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.