PT BINA ARTHA VENTURA
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Established in 2011, PT Bina Artha Ventura (BAV) is a subsidiary of Credit Access South East Asia (CA-SEA), a group based in Amsterdam with investments in microfinance institutions in Southeast Asia (Indonesia and Philippines). BAV strives to become the preferred business partner for Asian households lacking access to formal credit, enriching their lives by providing convenient and reliable solutions, and by matching their evolving needs. They specifically target female micro-entrepreneurs in Java and Sulawesi and are the 6th largest MFI in terms of market share reaching 442k clients via 396 branches. BAV provides micro (Group Lending methodology) and small business (Individual Lending methodology) loans. The former is their main lending activity representing less than 75% of total loans.
What is our funding objective?
FMO proposes a 5-year USD 10M loan (in local currency) to further grow BAVs loan portfolio.
Why do we fund this investment?
Indonesia is the world’s fourth most populous nation with 271 million inhabitants. Most Indonesians are at the bottom of the economic pyramid, earning less than USD 4.5 a day, with the bottom 40% earning less than USD 3.2 a day. Access to finance remains a challenge with only 17% of Indonesia's population borrowing from a formal bank or MFI in Java and only 13% outside of Java. Compared to other Asian countries, Indonesia has a relatively low household debt to GDP at 17%, indicating that there is still unutilized financing capacity. By providing small working capital loans to mainly low-income female entrepreneurs in Java, Sumatra and Sulawesi, BAV grants access to formal and cost-effective financial services, reducing their client’s vulnerability, and improving their lives.
What is the Environmental and Social categorization rationale?
Bina Artha’s E&S risk is categorized as C given the nature and size of its loans. The company does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. In terms of CPP risk, it is noted that as part of the loan agreement a renewal of the Client Protection Principals certification is agreed.
More investments
| Date | Total FMO financing |
|---|---|
| 7/3/2019 | EUR 0.02 MLN |
| 1/25/2022 | USD 5.00 MLN |
- Region
- Asia
- Country
- Indonesia
- Sector
- Financial Institutions
- Publication date
- 8/10/2022
- Effective date
- 11/15/2022
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C