KB Bukopin Debt (IFC-45295)

Countries
  • Indonesia
Geographic location 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
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 30, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
BANK KB BUKOPIN, PT TBK
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Campaign Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 13, 2024

Disclosed by Bank Jul 6, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank's website, the project "entails a senior debt facility for up to US$300 million in IDR equivalent, provided directly and indirectly for PT. Bank KB Bukopin (“Bukopin” or the “Bank”), a 67% owned subsidiary of the largest South Korean commercial bank, KB Kookmin Bank Co., Ltd. (“KBB” or the “Sponsor”). (the “Project”)The Project will be structured as a social bond (the “Social Bond”) in line with the International Capital Market Association’s (“ICMA”) Social Bond Principles (“SBP”) and/or the ASEAN Social Bond Standards (“SBS”). The Project will be the first ever Social Bond to be solely dedicated to supporting socially oriented financing in conformity with the eligibility criteria set under SBP, with the objective of supporting post-COVID recovery. By funnelling financial resources through the Social Bond, targeting social segments which have been amongst the worst hit by the pandemic or play an essential role in sustainable recovery, IFC will be contributing to an inclusive and resilient post COVID-19 recovery in Indonesia, which is in line with the “Building Back Better” approach."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the IFC, the proposed investment consists of IFC’s subscription (all on its own account) of the privately placed senior Social Bond issued by Bukopin and KBB for up to US$300 million in IDR equivalent for a 3-5 year tenor.

Financial Intermediary
A financial intermediary is a 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 Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IFC, Bukopin is 67% owned by KBB, with the remaining 33% stake held by a number of other shareholders, including institutional investors and the general public. Bukopin has been listed on the Indonesian Stock Exchange (“IDX”) since July 2006, with a market capitalization as of March 3, 2022 of IDR16.6 trillion (US$1.2 billion). 

Established in 1963, KBB is the largest bank in Korea in terms of total assets. As of September 2021, it had total assets of US$398 billion, a loan portfolio of US$294 billion and shareholders’ equity of US$28 billion. KBB is geographically well-diversified, with an extensive network of 1,655 branches and about 15,281 employees. Its latest rating (July 2021) stands at “Aa3” by Moody’s, “A+” by S&P and “A” by Fitch, with “Stable” outlook for all the three ratings.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

PT Bank KB Bukopin Tbk
Heru Helbianto
Head of Treasury Department
+62 21 7988266
heru.helbianto@kbbukopin.com
Jl. MT. Haryono Kav. 50-51, Jakarta, 12770, Indonesia
https://www.bukopin.co.id/

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works