PT Home Credit Indonesia, the local unit of the Dutch consumer finance company Home Credit, has raised $100 million in funding from the Jakarta-based unit of MUFG Bank.
The fresh capital will be used to strengthen Home Credit Indonesia’s sustainability commitment through ESG-based financing.
Volker Giebitz, Home Credit Indonesia’s director said in a statement that “this funding from MUFG will support the company’s mission to increase financial inclusion, while increasing digital inclusion, especially through financing smartphone and tablet purchases, which will create new opportunities for Indonesian people, especially in the framework of Indonesia’s digital transformation agenda”.
Home Credit had sold its Philippines and Indonesia businesses in November last year to a consortium comprising MUFG’s affiliates and Thailand’s Krungsri Bank for 596 million euros (approximately $621 million).
Krungsri and MUFG Bank acquired 75% and 25%, respectively of Home Credit Philippines. Meanwhile, Krungsri, Adira Finance (a subsidiary of Bank Danamon, which is an affiliate of MUFG), and a local Indonesian investor acquired 75%, 10%, and 15%, respectively, of Home Credit Indonesia.
Volker added that this collaboration extends the list of funding facilities obtained by Home Credit from various parties.
Yuki Hayashi, Managing Director and Head of Corporate Investment Banking & Products, MUFG Bank (Jakarta Branch), said: “Through MUFG’s initial financing arrangement with Home Credit Indonesia, we aim to support increased financial inclusion in the country. Being able to buy a mobile device for the first time often means gaining access to the internet—and with it, access to new opportunities such as starting and growing businesses and furthering education online. This collaboration aligns with MUFG’s commitment to invest a total of JPY35 trillion in global sustainability-related financing by 2030,” he added.
Home Credit offers point-of-sales financing services that are available in stores worldwide. In the Philippines, customers only need to be employed and have a valid ID to qualify for a loan, which is mostly used to pay for electronic gadgets and appliances.
Since its launch, it has lent to approximately 8 million customers nationwide and has approximately 9 million registered mobile application users.
Home Credit Indonesia, on the other hand, has lent to approximately 5 million customers and has approximately 11 million registered mobile application users.