MICROCAPITAL BRIEF: Citibank Indonesia, Overseas Private Investment Corporation Share Risk on $18m Loan to Bank Andara to Support Microfinance Institutions
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Friday, October 5, 2012

MICROCAPITAL BRIEF: Citibank Indonesia, Overseas Private Investment Corporation Share Risk on $18m Loan to Bank Andara to Support Microfinance Institutions

Citibank Indonesia, a branch of US-based financial services conglomerate Citigroup; the Overseas Private Investment Corporation (OPIC), a US–based development finance institution; and Bank Andara, an Indonesian company that provides wholesale services to microfinance institutions (MFIs) and savings services to individuals, have announced the disbursement of a USD 18.5 million term loan to finance the growth of Bank Andara’s wholesale microfinance lending. The risk on the loan is being shared by Citibank Indonesia and OPIC and will be released in two tranches during six months.

As of 2011 Bank Andara reported total assets of IDR 730 billion (USD 76 million). Its shareholders include MercyCorps, a US-based nonprofit relief and development agency; International Finance Corporation (IFC), a member of the World Bank Group; the Hivos-Triodos Fund, a Dutch microfinance investment vehicle; Cordaid Microfinance Alliance Fund, a Philippine-based microfinance investment vehicle created by the US-based Catholic Relief Services; KfW Bankengruppe, the German development bank; and Mr I Wayan Gatha, the founder of Bank Andara.

As of December 31, 2011, Citi reports total assets of USD 1.9 trillion. As of 2011, OPIC is active in 107 countries and reports a total portfolio of USD 14.5 billion.

The 74 Indonesian MFIs reporting 2011 data to the US-based nonprofit data provider Microfinance Information Exchange (MIX) held an aggregate gross loan portfolio of USD 10.1 billion disbursed to approximately 460,000 borrowers.

By Charlotte Newman, Research Associate

About Bank Andara
As of 2011 Bank Andara reported total assets of IDR 703 trillion (USD 76.2 billion). Its shareholders include MercyCorps, a US-based nonprofit relief and development agency; International Finance Corporation (IFC), a member of the World Bank Group; the Hivos-Triodos Fund, a Dutch microfinance investment vehicle; Cordaid Microfinance Alliance Fund, a Philippine-based microfinance investment vehicle created by the US-based Catholic Relief Services; KfW Bankengruppe, the German development bank; and Mr I Wayan Gatha, the founder of Bank Andara. Its mission is to “to catalyze large-scale outreach to millions of Indonesians lacking access to the financial sector by providing innovative financial products and services to and through microfinance institutions; and to maximize the value of its shareholders’ investments, while creating a long-term, profitable financial institution.” In 2010, Bank Andara’s retail loan portfolio balance was IDR 12.6 billion (USD 1.5 million). As of 2011 Bank Andara reported total assets of IDR 730 billion (USD 76 million).

About Citigroup
Citigroup (Citi) is a financial services conglomerate with headquarters in New York. Citi offers a range of products and services in approximately 140 countries including consumer and commercial banking, brokerage, asset management and institutional securities and transactions services. Citi’s philanthropic activities are carried out by the Citi Foundation. As of December 31, 2011, Citi reported total assets of USD 1.9 trillion.

About Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of 2011, OPIC is active in 107 countries and reports a total portfolio of UDS 14.5 million.

Sources and Additional Resources:

Press Release sent to MicroCapital.org from Citigroup: “Citi, OPIC and Bank Andara Support the Rapid Growth of the Microfinance Sector in Indonesia with $18.5m Term Loan Funding.”

MicroCapital.org story, October 17, 2011, “MICROCAPITAL BRIEF: Standard Chartered Indonesia Loans $3m to Bank Andara to Finance Lending, Technology Services for Microfinance Institutions,” http://www.microcapital.org/microcapital-brief-standard-chartered-indonesia-loans-3m-to-bank-andara-to-finance-lending-technology-services-for-microfinance-institutions/

MicroCapital.org story, August 5, 2011, “MICROCAPITAL BRIEF: Citi, OPIC Loan $20m to Microfinance Program ‘Danamon Simpan Pinjam’ of Indonesia’s Bank Danamon,” http://www.microcapital.org/microcapital-brief-citi-opic-loan-20m-to-microfinance-program-%E2%80%9Cdanamon-simpan-pinjam%E2%80%9D-of-indonesia%E2%80%99s-bank-danamon/

MicroCapital Universe Profile: Bank Andara
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Andara

MicroCapital Universe Profile: Citigroup
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Citigroup

MicroCapital Universe Profile: OPIC
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29

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