Jakarta, October 28, 2004
— The International Finance Corporation, the private sector arm of the World Bank Group, today signed partial guarantee facility commitment of up to Rp210 billion with PT. Bank NISP Tbk. 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, highlighting IFC’s commitment to offering value-added solution to its partners. The new facility signing, done by IFC Executive Vice President Peter Woicke -- visiting from IFC Headquarters in Washington D.C., follows a $35 million 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,” said President Director & 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, highlighted 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 added, “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.”
NISP is a commercial bank founded in 1941. Lending to small and medium businesses accounts for more than half of NISP’s lending activities. With approximately 157 offices located throughout Indonesia, the bank has established a regional niche to serve its small and medium business customers. The bank’s expanding office network is also helping to form a strong base for its newer initiatives in mortgage and consumer lending. As of September 30, 2004 (Unaudited) NISP’s total assets were Rp16.5 trillion (approximately $1.8 billion) and total net worth was Rp1.2 trillion ($136 million).
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.
