of International Finance Corporation (IFC)The World Bank Group company is evaluating a $150 million loan package for Indonesia’s KB Financia Multifinance (FMF) and Thailand’s KB J Capital (KBJ).
According to the disclosure information, Deal Street AsiaThe financing includes an A-loan of up to US$75 million in Indonesian rupiah equivalent to FMF, partially guaranteed by KB Kookmin Card Co. Ltd. (KBC), and another unguaranteed loan of US$25 million.
In Thailand, IFC is considering a loan of Thai baht equivalent of $50 million to KBJ, which is also backed by a corporate guarantee from KBC.
KBC, South Korea’s second-largest credit card issuer, holds large stakes in both companies, with an 80% stake in FMF and a 77.4% stake in KBJ.
As of June 2023, KBC had total assets of US$22.1 billion, a loan portfolio of US$19.9 billion and shareholders’ equity of US$3.5 billion.
The IFC loan aims to bolster FMF lending to Indonesia’s small and medium-sized enterprises (MSMEs) and address a large financing gap estimated at US$234 billion, or about 23 percent of the country’s GDP.
For KBJ, the loan will strengthen its financing of mobile devices, especially in the developing regions of the north, northeast and south of Thailand. The loan period is expected to be three years.
FMF is headquartered in Jakarta and has 195 branches and sales outlets across the country.
Meanwhile, Bangkok-based KBJ has a distribution network that includes 28 independent dealers, 4,000 Samsung Mobile dealers and 12 Synergy Shops managed by Jaymart.
IFC stressed that its loan to KBJ will provide long-term capital, give the company confidence and enable it to make new payments.
He also emphasized that this loan strengthens KBC and IFC’s ongoing relationship in Indonesia and signals the possibility of expanding the partnership to other countries.
Our strong partnership with KBC’s parent company, KB Financial Group (KBFG), is expected to generate even greater impact investments in IFC’s priority regions.
