Home Credit Indonesia closes $10m ESG-linked loan with Deutsche Bank
The loan will be used to increase financial inclusion and literacy.
Home Credit Indonesia has closed a $10m ESG-linked loan facility with Deutsche Bank that focuses on performance targets linked to ESG principles.
The performance targets linked to the loan focus primarily on financial inclusion and literacy. Home Credit will aim to increase first-time as well as female customers, in line with the Indonesian government’s plan to meet its 90% digital financial inclusion target by the year 2024.
“This funding will open broader opportunities for the Indonesian population, especially those who do not have access to formal financial services. Aside from providing affordable and transparent services that meet customer needs, we will additionally provide educational initiatives in several cities to increase financial literacy in Indonesia, alongside government efforts,” Director for Home Credit Indonesia Volker Giebitz said.
The ESG-linked loan complies with the Sustainability-Linked Loan Principles of the Asia Pacific Loan Market Association that support environmentally and socially sustainable economic activity, and performance targets will be independently verified by a third-party advisor.
This marks Home Credit’s first ESG-linked loan in Indonesia.