The International Finance Corporation (IFC), a member of the World Bank Group, is evaluating a US$150 million loan package for KB Finansia Multi Finance (FMF) in Indonesia and KB J Capital (KBJ) in Thailand.
According to a disclosure accessed by DealStreetAsia, the financing will include an A loan of up to US$75 million in Indonesian rupiah equivalent for FMF, partially guaranteed by KB Kookmin Card Co (KBC), and another US$25 million loan without a guarantee.
In Thailand, IFC is considering a US$50 million loan in Thai baht equivalent for KBJ, also backed by a corporate guarantee from KBC.
KBC, South Korea’s second-largest credit card issuer, holds significant stakes in both firms, with 80% ownership in FMF and 77.4% in KBJ.
As of June 2023, KBC’s assets total US$22.1 billion, with a loan portfolio of US$19.9 billion and shareholders’ equity of US$3.5 billion.
The IFC’s loan aims to bolster FMF’s lending to micro, small, and medium enterprises (MSMEs) in Indonesia, addressing the country’s substantial finance gap estimated at US$234 billion, or about 23% of its GDP.
For KBJ, the loan will enhance financing for mobile devices, particularly in Thailand’s less developed regions of the North, Northeast, and South. The loans are set to have a three-year tenor.
FMF, headquartered in Jakarta, operates 195 branches and point-of-sales nationwide.
Meanwhile, Bangkok-based KBJ has a distribution network that includes 28 independent point-of-sales, 4,000 Samsung mobile dealer shops, and 12 Synergy Shops managed by JayMart.
The IFC highlighted that the loan to KBJ would provide longer-term funding, instilling confidence in the company and enabling it to make new disbursements.
It also emphasised that the loan would reinforce the ongoing relationship between KBC and IFC in Indonesia, showcasing the potential for expanding partnerships into other countries.
The strong partnership with KBC’s parent company, KB Financial Group (KBFG), is expected to generate additional high-impact investments in IFC’s priority regions.
