IFC provides rupiah loan to Austindo

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