31705 - MBK Ventura

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Summary of Investment Information

Project Number

31705

Company Name

PT BINA USAHA KELUARGA

Date SPI Disclosed

Feb 15, 2013

Country

Indonesia

Region

East Asia and the Pacific

Projected Board Date

Mar 20, 2013

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Nov 30, 2016

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : May 6, 2013
Signed : Apr 16, 2013
Invested : Sep 30, 2013

Sector

Microfinance and Small Business - Non Commercial Banking

Project Description

The proposed project represents IFC’s commitment to support its financial inclusion agenda in Indonesia, through its investment in PT Bina Usaha Keluarga (“BUK” or the "Holding Company"), the controlling shareholder of PT. Mitra Bisnis Keluarga Ventura (“MBK” or “the Company”), a venture capital (“VC”) company authorized to provide working capital to its clients, and regulated by the Non-Bank Finance Industry Division of the Indonesian Financial Services Authority, Ministry of Finance. The proposed project will help strengthen and expand MBK’s outreach in serving mainly self-employed women in rural areas. The proposed project is also consistent with both IFC’s Indonesia and financial markets objectives as it strengthens MBK’s ability to continue expanding access to finance to Indonesia’s underserved population.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	4.97
Equity	3.93

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to Microfinance Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

1. Increasing access to finance for people at the base of the pyramid: MBK targets to reach at least one million poor women by 2017. The proposed IFC investment and technical assistance will support MBK in achieving its targets.

2. Women Empowerment: Increase access to finance women borrowers and hence empower women to have greater ability to grow their businesses and support their families. It is expected that MBK will employ women staff close to 3,200 by 2017.

1. Increased Credibility: IFC''s participation as a shareholder will strengthen MBK''s corporate governance structure and reputation in the market and bring comfort and confidence to both regulators and potential financiers. This seal of approval is critical as MBK''s wholesale funded model relies on institutional investors to fund its ambitious growth targets.

2. Combination of Skills and Financial Resources: IFC would be a strategic partner for MBK in several areas through IFC''s combined approach in investment service ("IS") and advisory service ("AS"). IFC AS is providing corporate governance advisory to MBK and is in at early discussion of developing a new project to address MBK product development.

3. Arrangement of IFC long-term loan or PCG: IFC''s ability to provide local currency funding and/or to mobilize local currency funding through partial credit guarantee ("PCG") will help address one of MBK''s major challenges in accomplishing its growth strategy.

E&S Category Rationale / Risks and Mitigation

This transaction involves an IFC investment in MBK, a financing company that provides small working capital with an average size of US$ 200 to women in businesses such as trade of consumer goods, crop and animal production and food and beverages processing, using the Grameen Bank methodology. The overall portfolio risk of the company is considered to be low and the project has therefore been categorized as FI-3 in accordance with IFC’s Environmental and Social Review Procedure. MBK will be required to screen loans against the IFC Exclusion List and the Indonesian applicable environmental and social laws and regulations, and will also be required to demonstrate that its labor practices are consistent with IFC Performance Standard 2: Labor and Working Condition.

Contacts

For Inquiries About the Project, Contact

Dr. Shafique Dhanani (President Director and Founder)
Ruko Asiatic, Blok B 15/59
Jalan Permata Sari, Lippo Karawaci Barat
Tangerang, 15810
INDONESIA

Phone: (62-21) 5949 2234
Fax: (62-21) 598 4320

http://www.mbk-ventura.com

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