Bank Mandiri has secured a US$750 million social loan guaranteed by the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group.
The funding will support financing for Indonesia’s MSMEs through the bank’s government-backed KUR programme.
This transaction marks MIGA’s first guarantee for a financial institution in ASEAN, according to Finansial Bisnis.
The backing allows the Indonesian state-owned bank to access more competitive interest rates for its lending programmes.
Bank Mandiri will direct the funding towards its people’s business credit programme, known locally as KUR.
Danis Subyantoro, Director of Risk Management at Bank Mandiri, said the guarantee allows the bank to manage its financing risks more effectively while expanding credit access for smaller businesses.
Alongside the funding announcement, Bank Mandiri has added a carbon credit purchasing feature to its Livin’ by Mandiri mobile banking app.
“Through these initiatives, we want to ensure that our sustainability agenda provides tangible benefits that can be accessed by MSMEs, our customers, and the wider community,”
said Danis.
The app previously allowed users to fund tree-planting initiatives, but the new update lets retail customers buy greenhouse gas emission reduction certificates through the Livin’ Planet section.
Featured image credit: Edited by Fintech News Indonesia, based on image by dit26978 via Magnific
