IFC lends $10 million to Panin Overseas

IFC lends $10 million to Panin Overseas

JAKARTA (JP): The International Finance Corporation (IFC), an
affiliate of the World Bank, has approved a loan of US$10 million
to PT Panin Overseas Finance, a multi-financing division of the
Panin Group.

Panin said in a statement that under an agreement signed
yesterday, IFC's financing package, which will be used to fund
leasing contracts with small and medium-sized businesses,
consists of a loan of $6 million from its own account and a
syndicated loan of $4 million.

The main business of Panin Overseas Finance, a publicly-listed
company on the Jakarta Stock Exchange, is leasing, factoring and
consumer finance.

"Long-term leasing is an effective way to channel funds to
small and medium enterprises," the statement quoted Peter Cook,
director of IFC's Asia Department, as saying.

"The financing package will address the shortage of long-term
debt funding for Indonesian leasing and financing companies. It
will provide medium-term funds which the company cannot obtain
from other sources. IFC's involvement is expected to benefit over
40 Indonesian firms," Peter added.

IFC is a shareholder in the company, having recently invested
$1.9 million in the share capital.

IFC is the largest multilateral institution of the World Bank
and is the largest multilateral source of equity and loan
financing for private sector projects in developing countries.

Panin Overseas Finance, after offering its shares to the
public in April, is 34.59 percent owned by PT Panincorp, 27.75
percent by PT Panin Investment Enterprises Ltd., 10.60 percent by
PT Usasli, 4.12 percent by DPK Panin Bank and 22.94 percent by
the investing public.

Panin Overseas Finance recorded an after-tax profit of Rp 3.63
billion ($1.59 million) in the first six months of this year and
total assets of Rp 167.3 billion as of June.(31)