Deutsche Bank and PT Home Credit Indonesia (“Home Credit”), a global consumer finance company, today announced that they have entered into an IDR 156 billion (USD 10.4 million) ESG-related loan facility which focuses on performance objectives linked to ESG principles.
This is Home Credit’s first ESG-linked loan in Indonesia, as it aims to provide sustainable financial services and inclusive growth in Southeast Asia’s largest economy and fourth most populous country. of the world.
The performance objectives linked to the loan relate mainly to financial inclusion and literacy. Home Credit will aim to increase the customer base of new customers as well as that of women, in line with the government’s plan to achieve its digital financial inclusion target of 90% by 2024.
Home Credit will also leverage digital technologies to provide consumer finance, while ensuring strict confidentiality of customer data.
Volker Giebitz, Director of Home Credit Indonesia, said, “We understand the importance of operating responsibly and sustainably. ESG principles are embedded throughout our business as we serve our 5.5 million customers across Indonesia. We also apply these ESG principles to our innovative financing strategies. Through this lending collaboration with Deutsche Bank, we are deepening our commitment to ESG and innovative finance at the same time.
“This funding will unlock broader opportunities for the people of Indonesia, especially for those who do not have access to formal financial services. In addition to providing affordable and transparent services that meet customer needs, we will also offer educational initiatives in several cities to increase financial literacy in Indonesia, alongside government efforts.
Samir Dhamankar, Director, Head of Transaction Banking and Global Securities Services, Deutsche Bank, said, “We are delighted to partner with Home Credit again on this important transaction, first in the Philippines and now in Indonesia. This transaction allows Home Credit to strengthen its consumer credit footprint in Asia, while reinforcing its commitment to pursuing a sustainable and financially inclusive agenda to improve the well-being of communities and the economy. It also underscores the strength of our global transaction banking platform in one of Deutsche Bank’s fastest growing markets, particularly serving multinational corporations in the region.
The ESG-linked lending complies with the Asia Pacific Loan Market Association‘s Sustainability-Lending Principles that support environmentally and socially sustainable economic activity, and the performance targets will be independently verified by a third-party advisor.