Bank Danamon (the Bank or the company) was established in 1956 and is one of the leading SME, micro and consumer lending banks in Indonesia. Following the Indonesian crisis in 1997, the Bank came under the Indonesian Bank Restructuring Agency (IBRA). Subsequently, IBRA auctioned 51% of the Danamon shares in mid 2003 which were purchased by Asia Financial (Indonesia) Pte Ltd (AFI). AFI is a consortium of Asia Financial Holdings (AFH) (85%) and Deutsche Bank (15%). AFH is wholly owned by Temasek Holdings. AFI has since raised its stake in the Bank to 70% as the Government of Indonesia has recently sold its entire shareholding in the Bank. The remaining 30% shares are held by the public. The project involves IFC providing a medium-term senior loan of up to $140 million equivalent in Indonesian Rupiah (IDR) to PT Bank Danamon Indonesia Tbk. (Danamon or the Bank). The IFC Loan would help Danamon to: - finance its growing loan portfolio in SMEs, consumer finance and microfinance; - diversify funding base; and - reduce its asset liability maturity mismatches.