Deutsche Bank and consumer finance provider Home Credit Indonesia have closed an ESG-linked loan facility amounting to 156 billion rupiah (US$10.4 million).
The facility is Home Credit’s first ESG-linked loan in Indonesia, as it seeks to deliver sustainable financial services and inclusive growth in Southeast Asia’s largest economy and the world’s fourth most populous nation.
The performance targets linked to the loan focus on financial inclusion and literacy. Home Credit will aim to increase first-time and female customers, in line with the government’s plan to meet its 90% digital financial inclusion target by 2024. The company will also tap on digital technologies to deliver consumer financing, while ensuring strict customer data privacy.
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 adviser.