VIH Capital Pte. Ltd. (FMO-62531)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
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
Apr 23, 2024
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
VIH Capital Pte Ltd
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)
$ 15.00 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.
Primary Source

Original disclosure @ FMO website

Updated in EWS Aug 11, 2024

Disclosed by Bank Jul 26, 2023

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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, loan proceeds will be earmarked for SME financing in Indonesia. VIH Capital Pte Ltd will deploy the funds through the Group's local platform operated by PT Berdayakan Usaha Indonesia (aka "Batumbu"). The Batumbu platform is fully licensed by the Indonesian Financial Services Authority ("OJK") and extends productive loans to credit-constrained and underserved SMEs by following an upstream and downstream supply chain approach, thereby creating sustainable ecosystems and driving SME growth through financial inclusion. A considerable part of its loan book is targeted at rural and youth-owned (entrepreneurs under the age of 35) SMEs.

Validus and its local platform Batumbu contribute to bridging the multibillion financing gap for SMEs which are a key contributor to the Indonesian GDP and provide stable employment supporting livelihoods and economic growth. Batumbu leverages technology and, in conjunction with its unique partnership model, benefits its clients with easy, fast and flexible credit that enables them to reach their potential. By providing stable, long-term and matching currency loan financing, FMO promotes the group's strategic objective of extending its own balance sheet lending operations.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project has been assigned an E&S risk category of C. Loan applications are screened against an exclusion list and there are no IFC PS transactions.

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

Funding: MASSIF

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.

VIH Capital Pte Ltd ("VIHC") is wholly owned by Validus Investment Holdings Pte Ltd ("VIHPL") which is a Peer-to-Peer (P2P) digital lending platform operator for SMEs in four countries across the SEA region. It aims to address the significant financing gap faced by SMEs with the purpose to fuel their growth and drive job creation and local economic prosperity.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Validus Holdings Parent Company -
- - - - VIH Capital Pte Ltd Client -

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.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works