IFC provides rupiah loan to Austindo

JAKARTA: The International Finance Corporation, the private arm of the World Bank, signed on Tuesday an agreement to provide up to US$15 million through local currency loan facility to financing firm PT Austindo Nusantara Jaya Finance.

The loan facility is the first fixed-rate and long-term loan in Indonesian rupiah offered by the IFC, and novel for the market since the Asian Financial crisis.

The facility is aimed at improving the risk profile of Austindo in relation to interest rates, in which the company can manage risks associated with loans.

Austindo is a non-bank financial institution that plans to use the funds to expand its automobile financing and leasing activities. -- JP