IFC-Dharmala loan deal

IFC-Dharmala loan deal

JAKARTA (JP): The International Finance Corporation (IFC), an affiliate of the World Bank, has signed an agreement to provide a medium-term loan of US$50 million to PT BBL Dharmala Finance of Indonesia.

The company said yesterday in a statement that Dharmala finance will use the loan to finance leases to more than 200 small and medium enterprises in Indonesia.

"This loan marks the first unsecured term loan for PT BBL Dharmala Finance and will serve to broaden its sources of funding and lower its borrowing costs in the long term," said Rashad Kaldany, manager of capital markets in IFC's Asia department.

The financing package consists of a US$15 million loan for its own account and a syndicated loan of US$35 million for the accounts of participating financial institutions. The company did not identify the institutions.

BBL Dharmala Finance -- with its main businesses in leasing, factoring and consumer finance -- is a joint venture between Bangkok Bank and Dharmala Sakti Sejahtera, a subsidiary of the Dharmala Group. (13)