Indonesia: IFC proposes to provide up to $50m debt to microfinance institution MBK
The International Finance Corporation (IFC) has proposed to provide financing of up to $50 million to Indonesia-based microfinance institution PT Mitra Bisnis Keluarga Ventura (MBK), a disclosure said.
The funding is expected to support the growth of the company’s microfinance portfolio, mainly targeting underserved rural women borrowers.
The proposed investment comprises $10 million loan from IFC’s own account and a parallel loan of up to $40 million, according to the disclosure.
Jakarta-headquartered MBK started operations in 2003. As of September 30, 2017, its asset base stands at $179 million and it serves close to a million clients. MBK targets the bottom 25 per cent of the population in Indonesia by income, with a focus on rural women not traditionally banked by commercial banks and other finance institutions, it added.
Photo courtesy of Water.org.