Strengthens Working Capital, Standard Chartered Distributes Bilateral Loan Facility for MPM Finance
By : Dina Astria And Aldo Bella Putra | Saturday, April 21 2018 - 11:00 IWST
CEO SCBI Rino Donosepoetro dan Presdir PT Sumber Alfaria Trijaya Tbk, Hans Prawira (Foto Dok Industry.co.id)
INDUSTRY.co.id - Jakarta - Standard Chartered Bank Indonesia ("Bank") and MPM Finance are cooperating with the utilization of a Rp 337 billion term loan facility secured by MPM Finance's receivables. Funding in the form of term loans is utilized by MPM Finance to meet the Company's working capital requirements.
Rino Donosepoetro, Chief Operating Officer, Standard Chartered Bank Indonesia said, "Since 2013, we have been working with MPM Finance and this is one of the Bank's commitment in supporting the continuous development of our clients' business. We hope our support can assist MPM Finance in enhancing its business capacity as a leading multifinance company in Indonesia operating in the consumer financing and leasing segment for industry. This synergy also further reinforces the Bank's commitment to continue to place clients as a top priority. "
This loan facility is the fifth term obtained by MPM Finance from Standard Chartered in term loan facility or syndicated loan. Unlike the previous four loans, this bilateral loan facility is channeled in Rupiah, as a form of diversification of funding currencies.
Meanwhile, Johny Kandano, Chief Executive Officer, MPM Finance expressed MPM Finance's appreciation for Standard Chartered's support. "Funding from this loan will be used fully to meet the company's working capital to support the financing business line by MPM Finance, and to maintain the growth of the financing portfolio which is healthy by maximizing the potential of the automotive market in Indonesia that continues to grow. In addition, this rupiah loan is a company strategy to diversify funding sources while earning competitive interest rates ".
"In addition to actively participating in supporting the Government of Indonesia's development agenda, one of the Bank's strategies this year for the Corporate & Institutional Banking business segment is to encourage portfolio growth by providing asset booking facilities to our clients, one of them through the provision of trade finance services. This year, Bank targets loan growth to increase by 13 percent for Corporate & Institutional banking segments," Rino said.