KIF Loan 2020 (IFC-41199)

Countries
  • Timor-Leste
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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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
May 25, 2020
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
Kaebauk Investimentu no Finansas
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)
$ 5.00 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 @ IFC website

Updated in EWS May 21, 2020

Disclosed by Bank Apr 21, 2020

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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, "International Finance Corporation (“IFC”) is proposing to extend an up to US$5 million senior loan facility with revolving feature, comprising of a loan of up to $2.5 million from IFC’s own account (the “A Loan”) and a loan of up to $2.5 million from IFC in its capacity as the Implementing Entity of the IDA-PSW BFF (the “IDA-PSW BFF Loan”), for a total tenor of up to four years to Kaebauk Investimentu no Finansas, SA (“KIF” or the “Company”). KIF is the largest micro finance institution (“MFI”) in Timor-Leste...

The proceeds will be used by the Company to develop its agri-financing business targeting farmers and supply chain participants in the agri-sector with prioritization to women borrowers. KIF is a valued client of IFC since 2013 and was formerly known as Tuba Rai Metin (“TRM”), a leading non-governmental organization (“NGO”) MFI. The Company went through a transformation to become a regulated MFI during 2013-2016 and after obtaining Other Deposit Taking Institution (“ODTI”) license in Mar-16, KIF was instituted as TRM’s subsidiary and the microfinance operations of TRM were transferred to KIF. IFC had been contributing an instrumental role during the transformation process. The Company provides inclusive financial services primarily to poor rural Timorese women and small businesses, supported by nationwide presence across all TL’s 13 districts and more than 300 employees serving more than 14,000 clients as of December 2019 with a strong gender focus with more than 70 % of the clients being women."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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 IFC, "KIF’s shareholder base is adequately diversified, consists of a local NGO being the majority shareholder, namely TRM, a local minority shareholder (staff association of the Company), and 2 international minority shareholders (Base of Pyramid Asia Pte Ltd and IFC)."


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.

Kaebauk Investimentu no Finansas, S.A.
Angelo B. C. Soares
Chief Executive Officer
+670 7726 2887
(Next to China Embassy)Aitarak Laran, Dili, Timor-Leste
www.kaebuk.javatek.co.id


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/

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How it works