The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has signed a partial guarantee facility commitment of up to Rp210bn with PT Bank NISP Tbk in Indonesia. The guarantee is related to the credit performance of a portfolio of multifinance receivables that will be acquired by NISP. The IFC facility will allow NISP to acquire a much larger portfolio than it would be able to do without the guarantee.
This is the first local currency credit guarantee launched by IFC in Indonesia. The new facility follows a US$35mn senior loan signed in June 2004.
“We are very proud by the fact that we are the first Indonesian bank in which IFC has ever put its investment into,” says president, director and CEO of Bank NISP Pramukti Surjaudaja, “Now that we are also the first bank in Indonesia receiving this scheme, we become increasingly encouraged by this high level trust. Given our commitment to uphold prudent principles and solid strategies to optimize our financial results, we are confident to improve credit portfolio of Bank NISP.”
NISP is an important, medium sized player in the Indonesian banking sector, with a growing national office network and focus on small and medium enterprises. The partial guarantee facility is targeted at expanding the capacity of NISP while enabling it to acquire relatively large receivables portfolio. The new assets will allow NISP to continue doing business with its large and growing clients by addressing the restraint relating to single borrower limit, on both financial and operational aspects.
IFC executive vice-president Peter Woicke, highlights the partnership between IFC and NISP: “The facility is a creative way of leveraging IFC’s strong balance sheet to enable a company to engage in larger business ventures by better managing its risk. NISP is a strong performing IFC client and this transaction expands our relationship.”
IFC Indonesia Country Manager German Vegarra adds: “Our support for NISP demonstrates IFC’s commitment to increase our activities in Indonesia. To that we are being creative and offering clients a more diverse range of financial products. We hope to be able to serve more Indonesian clients through this kind of innovation.”