Consumer lender Home Credit secured a $10.4 million ESG-linked loan facility from Deutsche Bank to promote financial services and inclusive growth in Indonesia.
In a statement, Home Credit Indonesia said it was its first ESG-related loan in Indonesia, Southeast Asia’s largest economy and the world’s fourth most populous country.
Under the loan agreement, Home Credit will strive to increase new customers as well as women, in line with the Indonesian government’s plan to achieve its digital financial inclusion target of 90% by 2024.
Additionally, the company, which has 5.5 million customers across Indonesia, will also leverage digital technologies to provide consumer finance while ensuring strict customer data privacy.
“This funding will open greater opportunities for the people of Indonesia, especially those who do not have access to formal financial services,” said Home Credit Indonesia director Volker Giebitz.
The short-term loan facility establishes clear metrics and key performance indicators (KPIs) with respect to ESG considerations, as well as concrete targets for the metrics Home Credit has committed to achieve over the life of the loan .
The indicators would be measured and verified by an independent third-party advisor to ensure that the loan complies with the Asia Pacific Loan Market Association‘s sustainability lending principles.
Samir Dhamankar, Director and Head of Banking and Securities Services at Deutsche Bank, said the loan facility allows Home Credit to strengthen its customer lending footprint in Asia while reinforcing its commitment to pursuing a sustainable program and financially inclusive.
“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,” Dhamankar added.
Home Credit Indonesia, headquartered in Jakarta, was established in 2013. It continues to expand its business to expand to all cities and territories in the country.
“At Home Credit, we see sustainability not just as an additional factor or benefit, but as a core value that we include in the way we run our business,” said Jean-Pascual Duvieusart, CEO of Home Credit Group. , in a video. posted on the company’s social media page.