Jakarta, February 9, 2005
—The International Finance Corporation, the private sector arm of the World Bank Group, today announced the sale of its equity holdings in PT Bina Danatama Finance, marking the conclusion of a successful client restructuring. BDF is a leading provider of commercial lease finance that is listed on the Jakarta and Surabaya Stock Exchanges. Shares will be purchased by PT Sari Dasa Karsa.
IFC encourages restructuring as an ordinary part of business to promote recovery rather than liquidation. The process ensures that companies like BDF can continue to operate, provide services and employ workers during a period of stress, and then emerge revitalized. BDF has continued to develop its business during its restructuring and now has a strong management team in place to guide new business growth and development. IFC and other creditors worked with BDF management to create an open and transparent share sale process that benefits the company and its clients.
“The purchase of IFC shares and the new leadership from Sari Dasa Karsa offers exciting new business opportunities for Bina Danatama Finance,” said Maria da Graça Domingues, IFC director of Special Operations, “Successful restructuring of businesses like this one promote a healthy economy in Indonesia over the long term. They encourage confidence among investors by offering commercially-based alternatives to resolving business issues in this market.”
SDK is a private Indonesian holding company which also owns a 43.5 percent stake in PT Bank Buana Indonesia. “We are delighted to conclude this acquisition of PT Bina Danatama Finance, which enjoys a commendable franchise in the robust market for commercial and consumer finance leases,” said SDK Director Siang Hadi Widjaja. “There are significant synergies to be developed between the franchises of BDF, SDK and Bank Buana, which we look forward to implementing in the near future.”
PT Sari Dasa Karsa acquired 270 million shares and 47.9 million warrants in PT Bina Danatama Finance. The shares and warrants were sold to SDK by 21 creditor shareholders comprising many of the leading international and multilateral financial institutions in the world and included syndicates led by IFC and the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanded N.V., a Dutch based development finance institution also known as FMO.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
