Radana Finance table, .k-table{ border-collapse:collapse; width:100%; table-layout:fixed; margin-bottom: 15px;} .k-table, .k-table td, table, table td {outline: 0;border: 1px solid #000; } .k-table td, table td { padding: 5px; }        The project consists of providing, PT. Radana Bhaskara Finance Tbk (Radana or Company), a 5 year (1 year grace) secured senior loan of up to US$40 million (equivalent to around IDR 530 billion) in either Indonesian Rupiah (IDR) or US Dollars. The security is expected to be a pledge over specific eligible receivables providing 100% coverage. IFC shall participate with up to US$20 million while the balance is being mobilized through a parallel or B loan.                  The loan will support Radana to diversify from motorcycle financing to multipurpose, working capital and investment financing for productive purposes to low and middle income clients, including micro, small and medium enterprises (MSME). The proceeds will finance i) micro, small and medium enterprises; ii) individuals utilizing the loans for productive purposes; iii) home renovations; iv) student-loans and (v) women borrowers.                  Radana, established in 1972, is a listed multi-finance company in Indonesia. The major business currently is motorcycle financing. The Company has a view to grow in the multi-purpose, investment and working capital financing areas through both conventional and Islamic finance. Deepening the Non-Banking Financial Institutions ("NBFI") Sector: Financing Radana will help strengthen the NBFI sector in Indonesia which is still heavily dominated by banks. NBFIs can better serve individuals and small ticket loans as well as provide healthy competition to banks.  

Increased Access to Finance: The Project will help support enterprises and the expansion of their activities, and play a modest, but meaningful role, in addressing the MSME market financing gap estimated at USD 25 billion. Access to finance enables firms to innovate and become more productive. The Company's diversification in its lending portfolio will increase average loan sizes and tenors and better serve the targeted sectors which comprise of low-to-middle income population in Indonesia including women borrowers.

Job Creation and Private Sector Development: While the number of direct jobs the Project will support is limited, it will indirectly support job creation through the support of MSMEs which account for 97 percent of employment and 57 percent of value-added in the economy.

Demonstration Effect: IFC's engagement with Radana at this stage, when the change in regulations has allowed multi finance companies to extend working capital and investment loan, is likely to encourage other multi finance companies to also enter into this space and therefore have a strong demonstration effect.

Empowerment of Women: Supporting Radana to increase financing to women borrowers will help improve gender imbalance in access to finance in Indonesia, and therefore support economic empowerment. Evidence shows that achieving the World Bank Group twin goals of reduced poverty and shared prosperity is only possible if the private sector succeeds in efforts to include women in the economy and eliminate barriers to their full participation.