KEB Hana Indonesia Rights Issue IV (IFC-42034)

Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
BANK KEB HANA, PT
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 3, 2021

Disclosed by Bank Oct 12, 2018


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

The proposed project consists of an additional equity investment by IFC in PT. Bank KEB Hana Indonesia (“KHI” or the “Bank”), IFC portfolio client since 2007.

KHI is a midsize bank in Indonesia with an asset base of IDR 40,654 billion (US$2.7 billion). The proposed investment will support the Bank’s growth strategy and finance its capital investment in digital infrastructure to create the distribution and service channels for increasing the size of its lending operations in all business segments, particularly in the SME segment. The Bank will be able to leverage its equity to expand the volume of its SME loan portfolio in a sustainable manner.

Investment Description

IFC is an existing shareholder of the Bank and has a pre-emptive right to subscribe to new shares to maintain its ownership in the Bank. The proposed project consists of an additional equity investment of up to IDR 216 billion (estimated US$15 million equivalents) through a rights issue.

Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

The shareholders of KHI are (i) KEB Hana Bank (“KHB”) with 89.01% shareholding; (ii) IFC with 9.98% shareholding; and (iii) Mr. Bambang Setijo with 1.01% shareholding.

KEB Hana Bank:  KHB is a wholly owned subsidiary of Hana Financial Group (“HFG”) and is one of the major players in Korea's banking industry. KHB operates as HFG's main distribution channel by offering comprehensive financial services through about 800 branches in Korea and 150 branches in 24 foreign countries. Long-term ratings of KHB by Moody’s and S&P are A1 and A+, respectively.

Mr. Bambang Setijo: Mr. Setijo is the local shareholder. He is an independent businessman.

 

 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Baring Private Equity Partners Parent Company Construction owns Interplex Holdings Ltd Client Construction
Cheniere Energy Inc Parent Company Mining owns Cheniere Corpus Christi Holdings LLC Client Mining
Doosan Heavy Inds & Constr Co Parent Company Construction owns Doosan Power Systems Client Construction
HAN KOOK SAN UP Co Parent Company Construction owns HAN KOOK SAN UP Co Ltd Client Construction
Hana Financial Investor Finance invests in Ace Tool Parent Company Construction
Hana Financial Investor Finance invests in Ace Tool Client Construction
Hana Financial Investor Finance invests in Aerotech Korea Co Ltd Client Construction
Hana Financial Investor Finance invests in Aerotech Korea Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Agricultural A Ram Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Agricultural A Ram Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Ansung Industrial Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Ansung Industrial Co Ltd Client Construction
Hana Financial Investor Finance invests in Anu Information Telecommunication Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Anu Information Telecommunication Co Ltd Client Communications
Hana Financial Investor Finance invests in April Intl Entrp Pte Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Arion Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Arion Co Ltd Client Communications
Hana Financial Investor Finance invests in Asia Symbol China Holdings Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Baekdoo F&S Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Baekdoo F&S Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Baring Private Equity Partners Parent Company Construction
Hana Financial Investor Finance invests in Blue Sky Engineering & Construction Parent Company Construction
Hana Financial Investor Finance invests in Blue Sky Engineering & Construction Client Construction
Hana Financial Investor Finance invests in Brickworks Ltd Parent Company Construction
Hana Financial Investor Finance invests in Brickworks Ltd Client Construction
Hana Financial Investor Finance invests in Byucksan Marine Insulation System Co.Ltd Parent Company Construction
Hana Financial Investor Finance invests in Byucksan Marine Insulation System Co.Ltd Client Construction
Hana Financial Investor Finance invests in CYNEXZONE CO LTD Parent Company Communications
Hana Financial Investor Finance invests in CYNEXZONE CO LTD Client Communications
Hana Financial Investor Finance invests in Dabp Co.Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Dabp Co.Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in DaeGu Agricultural Products Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in DaeGu Agricultural Products Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Daum Construction Co Ltd Client Construction
Hana Financial Investor Finance invests in Daum Construction Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in DAUN E&C Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in DAUN E&C Co Ltd Client Construction
Hana Financial Investor Finance invests in Deokwoon Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Deokwoon Co Ltd Client Construction
Hana Financial Investor Finance invests in Dong Ah Remicon Ltd Co Parent Company Construction
Hana Financial Investor Finance invests in Dong Sung Precision Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Dongsung Heavy Industries Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Dongwoo Skt Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Dongwoo Skt Co Ltd Client Communications
Hana Financial Investor Finance invests in Doosan Heavy Inds & Constr Co Parent Company Construction
Hana Financial Investor Finance invests in Doosan Infracore Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Doosan Power Systems Client Construction
Hana Financial Investor Finance invests in Econy Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Gumsung Industrial Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in HAN KOOK SAN UP Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hanil Construction Material MFG Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hans Ind Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hansol Construction Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hansol HomeDeco Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Il-Shin Tech Parent Company Communications
Hana Financial Investor Finance invests in Il-Shin Tech Client Communications
Hana Financial Investor Finance invests in INT Tec Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in INT Tec Co Ltd Client Communications
Hana Financial Investor Finance invests in Interplex Holdings Ltd Client Construction
Hana Financial Investor Finance invests in Je&Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Kapjin Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Kapjin Co Ltd Client Communications
Hana Financial Investor Finance invests in Kiseung Ind Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in KMS Lab Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in KMS Lab Co Ltd Client Communications
Hana Financial Investor Finance invests in Korea Land & Housing Corp Parent Company Construction
Hana Financial Investor Finance invests in Kpf Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in KR Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Latchwon Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Limscable Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Limscable Co Ltd Client Communications
Hana Financial Investor Finance invests in Mido Construction Co. Ltd Parent Company Construction
Hana Financial Investor Finance invests in Misung Remicon Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Nara Corp Client Agriculture and Forestry
Hana Financial Investor Finance invests in Nara Corp Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Nubicom Inc Parent Company Communications
Hana Financial Investor Finance invests in Nubicom Inc Client Communications
Hana Financial Investor Finance invests in Ohsang International Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Ohsang International Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in PTK Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in PTPN III Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in PTPN III Client Agriculture and Forestry
Hana Financial Investor Finance invests in Rgm Intl Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Samick Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Sang Sang Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Seakwang International Network Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Seakwang International Network Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Shin Textile Solutions Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Thai Beverage PCL Parent Company Construction
Hana Financial Investor Finance invests in Unitoa Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Unitoa Co Ltd Client Communications
Hana Financial Investor Finance invests in Utronix Inc Parent Company Communications
Hana Financial Investor Finance invests in Utronix Inc Client Communications
Hana Financial Investor Finance invests in YJ Link Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in YMP Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Yujin Fibre Board Industrial Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Yujin Fibre Board Industrial Co Ltd Parent Company Agriculture and Forestry
Hana Financial Group Investor Finance invests in Cheniere Corpus Christi Holdings LLC Client Mining
Mido Construction Co. Parent Company Construction owns Mido Construction Co. Ltd Client Construction
Rgm Intl Parent Company Agriculture and Forestry owns April Intl Entrp Pte Ltd Client Agriculture and Forestry
Rgm Intl Parent Company Agriculture and Forestry owns Asia Symbol China Holdings Ltd Client Agriculture and Forestry
Thai Beverage PCL Parent Company Construction owns Walker Corp Pty Ltd Client Construction

Contact Information

1/The Project Contact

PT Bank KEB Hana Indonesia 
Contact: Marco Wirjadi 

Tel: 021 508 111 - 811660 

Email: marco.wirjadi@kebhana.co.id 

Address: Mangkuluhur City Tower One Jln. Jend. Gatot Subroto Kav. 1-3, Jakarta,

Indonesia 12930 

Website: www.kebhana.co.id 

2/The IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/