Standard Chartered, an international commercial bank headquartered in London, has provided an IDR 15 billion loan, the equivalent of over USD 1.6 million, to Mitra Bisnis Keluarga Ventura (MBK), a microfinance institution (MFI) located in Indonesia.The loan is backed by a USD 750,000 guarantee by the Grameen Foundation, an independent non-profit organization. This is Standard Chartered’s first loan intended for microfinance in Indonesia, and the bank now provides products and services to MFIs in 23 countries. According to the MIX Market, the microfinance information clearinghouse, as of December 31, 2008, MBK has a gross loan portfolio of USD 5.1 million and 103,734 active borrowers.
By Christopher Maggio, Research Assistant
About
Standard Chartered
Description
Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. The bank has over 1,600 branches in over 70 countries. Since the 1990’s, Standard Chartered has focused on developing its franchises in Asia, Africa and the Middle East.
As of 2008, Standard Chartered had extended USD 385 million in loans to 52 microfinance institutions, with an average loan size of USD 7 million.
MicroCapital’s Microfinance Universe profile: Standard Chartered
About
Grameen Foundation
Description
The Grameen Foundation, founded in 1997, is a non-profit organization based in Washington, D.C. Though the Grameen Foundation is independent of the Grameen Bank, Muhammad Yunus, the founder of the Grameen Bank, serves on the foundation’s Board of Directors. The foundation aims to help microfinance institutions throughout the world replicate the microfinance model of the Grameen Bank. It provides financial, technological, and managerial support for local organizations, and intends to provide new business opportunities and telecommunication services to the rural poor. The Grameen Foundation works with microfinance institutions (MFIs) in about 37 countries worldwide.
MicroCapital’s Microfinance Universe profile: Grameen Foundation
Contact Information
Grameen Foundation
50 F St NW
8th Floor
Washington, DC 20001
202-628-3560
info@grameenfoundation.org
About
Mitra Bisnis Keluarga Ventura (MBK)
Description:
Mitra Bisnis Keluarga Ventura (MBK) is a microfinance institution (MFI) located in Indonesia. It was founded in 2003 and is a non-bank financial institution. As of March 7, 2010, it offers only “micro working capital,” loans starting at a maximum of IDR 500,000, the equivalent of USD 54.
MicroCapital’s Microfinance Universe profile: Mitra Bisnis Keluarga Ventura (MBK)
Just the Facts
– Country of Incorporation: Indonesia
– Year Founded: 2003
– Legal Status: Non-Bank Financial Institution
– Total Assets: USD 7.4 million (as of 31/Dec/08)
– Gross Loan Portfolio: USD 5.1 million (as of 31/Dec/08)
– Number of Active Borrowers: 103,734 (as of 31/Dec/08)
– Return on Assets: 1.16%
– Return on Equity: 7.02%
– Participant(s)/Backer(s)/Investor(s): BlueOrchard, Standard Chartered, Grameen Foundation
– Products: Loans
– Main Funding Sources: Loans, Shareholder Capital
– CEO: Sartono Ali Putro
Contact Information
Address:
Ruko Asiatic B 15/59 Jalan Permata Sari Lippo Karawaci Barat
Tangerang
Banten
15810
Indonesia
Phone:
+62 21 5949 2234
Fax:
+62 21 598 4320
Email:
communications.officer@mbk-ventura.com
Additional Resources:
*1 March 2010, JAKARTA –* Standard Chartered has completed its first microfinance transaction in Indonesia, providing financing worth IDR15 billion (equivalent to USD1.6m) to Mitra Bisnis Keluarga Ventura (MBK). MBK is Indonesia’s leading microfinance institution (MFI), and was the top ranked institution in the MIX Market’s Global Composite Ranking of MFIs in 2009.
Since launching its operations in 2003, MBK has become the largest Grameen-style microfinance institution in Indonesia. It currently serves more than 160,000 clients, all women, and plans to reach more than one million clients over the next three years.
The loan is supported by a USD 750,000 guarantee from Grameen Foundation, a global non profit organisation based in Washington DC that works to replicate the Grameen Bank microfinance model around the world through a global network of partner microfinance institutions.
“We are delighted to complete our first microfinance transaction in Indonesia with MBK, the country’s leading MFI. Indonesia has one of the world’s largest microfinance sectors and we look forward to providing more support to it in the future,” said Standard Chartered’s Global Head of Microfinance, Prashant Thakker.
This deal signifies the second recent microfinance loan in Asia, with the Standard Chartered now providing banking products and services to microfinance institutions to a total of 23 countries.
Standard Chartered Bank Indonesia CEO designate *Tom Aaker* said:
“At Standard Chartered Bank, we are determined to be a force for good within the markets in which we operate. As well as contributing to sustainable business economic growth through our core business activities in Asia, Africa and Middle East, we want to have also a broader positive impact on the societies in which we live and work. This microfinance loan to MBK is a great example of how we are striving to
achieve this in Indonesia.”
In 2006, Standard Chartered committed to provide development organisations and fund managers with USD500m of credit and financial instruments, as well as technical assistance to finance MFIs in Africa and Asia by 2011. In December 2009 the Bank exceeded the target, providing USD540m to microfinance industries in Africa and Asia,
benefiting over 4 million people who are currently excluded from participation in the financial sector.
Throughout 2009, Standard Chartered Indonesia spent more than USD 300,000 on a range of community initiatives, including providing 2,000 free cataract operations, planting 8000 trees, providing scholarships for over 500 students, as well as training for 150 primary school teachers and completed rehabilitation of five primary schools devastated by the Jogjakarta earthquake, among other initiatives. In addition, the Bank announced a USD1 million programme to check the eyes of more than 100,000 students and teachers in more than 100 Jakarta junior high schools and provide free eye glasses to an estimated 18,000 students and teachers over the next three years.
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