In Jakarta
Danny Juddin
Phone: +6221 5299 3001
E-mail: djudin@ifc.org

In Hong Kong
Desmond Dodd
Phone: +852 2509 8183
E-mail: ddodd@ifc.org


Jakarta, August 25, 2004 — The International Finance Corporation, the private sector arm of the World Bank Group, today announced its commitment of a $35 million senior loan to PT Bank NISP and plans to offer NISP a partial guarantee of up to 210 billion rupiah related to the credit performance of a diversified portfolio of multifinance receivables. NISP is a small but important player in the Indonesian banking sector, with a large national branch network and focus on small and medium enterprise lending.

The IFC loan will help to expand NISP’s core lending activities in the small and medium business sector while also diversifying NISP’s liability structure. The partial guarantee facility would expand the capacity of NISP and enable it to acquire relatively large receivables portfolio within its risk management guidelines. Through grants to finance technical assistance to NISP, Government of Switzerland has funded substantial preparatory work aimed at strengthening NISP's capabilities

"NISP is a pioneer in supporting smaller businesses in Indonesia,” said IFC East Asia and the Pacific Director Javed Hamid “Our support for NISP shows IFC’s commitment further development of smaller enterprises and the financial institutions that encourage them." IFC Indonesia Country Manager German Vegarra added, “Our support for NISP demonstrates IFC’s commitment to expand its activities in Indonesia. The transactions highlight IFC's creativity in serving clients through a diverse range of financial  products. We hope to be able to serve more Indonesian clients through this kind of innovation.”

NISP is a commercial bank founded in 1941.  Lending to small and medium businesses accounts for more than half of NISP’s lending activities.  With approximately 150 branches located throughout Indonesia, the bank has established a regional niche to serve its small and medium business customers.  The bank’s expanding branch network is also helping to form a strong base for its newer initiatives in mortgage and consumer lending.  As of June 30, 2004, NISP’s total assets were 15,715 billion rupiah (approximately $1.7 billion) and total net worth was 1,152 billion rupiah ($123 million).

The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.