PT Esta Dana 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
Our customer is Esta Dana Ventura (“EDV”), a microfinance institution based in Indonesia, offering solely productive micro loans. It operates 218 branches and has more than 300,000 customers.
What is our funding objective?
Our funding objective is to provide a senior loan which will be used to grow the loan book of EDV. The institution's client base consists mainly of female entrepreneurs throughout Indonesia.
Why do we fund this investment?
Supporting inclusive businesses is aligned with FMO’s commitment on reducing inequalities, and this investment has a 100% FMO Reducing Inequalities label. Further, FMO’s loan will contribute to diversifying the client’s liquidity profile for prudent asset liability management.
What is the Environmental and Social categorization rationale?
The investment is E&S categorized as C given the business nature and loan size with the average ticket of USD 300. EDV does not have any exposure to activities on FMO’s exclusion list, or project finance, or IFC Performance Standard triggered transactions. In terms of Client Protection risk, FMO attaches great importance to the protection of end customers. It is noted that EDV is a responsible microfinance institution with a strong social mission and is in the process of getting SPTF-Cerise certified. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
More investments
| Date | Total FMO financing |
|---|---|
| 3/6/2024 | USD 5.30 MLN |
- Website customer/investment
- https://www.estadanaventura.co.id/
- Region
- Asia
- Country
- Indonesia
- Sector
- Financial Institutions
- Publication date
- 1/22/2024
- Effective date
- 7/30/2024
- 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