IFC to lend $100m to Indonesian bank BTPN
Friday, December 23, 2016
Indonesia’s Bank Tabungan Pensiunan Nasional (BTPN) will receive $100 million in loans from the International Finance Corporation (IFC), according to a filing. The loans will be used to fund the growth of BTPN’s micro, small and medium enterprises businesses (MSMEs). It will also be channeled to women borrowers.
“This facility will in turn allow BTPN to increase access to finance for the segments of the population that are currently underserved,” said IFC in a statement. “As the facility will have a longer tenor than usual deposits, the project will also help BTPN to strengthen its balance sheet structure by reducing its asset-liability maturity mismatch,” it added.
BTPN has been receiving IFC loans since 2009. The mid-size commercial bank targets low income pensioners, MSMEs, and women entrepreneurs at the bottom of the pyramid. Based in Jakarta, the bank’s network includes 387 branches dedicated for pension business, 573 branches for micro business, 6 branches for SME business, and 64 branches for funding business.
Since 2014, BTPN has been trying to increase its focus on digitization and adoption of technology to increase banking outreach to people in remote areas. It deploys 35,000 agents to conduct its branch-less banking activities.
Source: Deal Street Asia (link opens in a new window)