Shinhan ID Debt (IFC-48213)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
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
Approved
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
Dec 8, 2023
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
Shinhan Bank Co., Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Climate and Environment
  • Energy
  • Finance
  • Transport
  • Water and Sanitation
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)
$ 200.00 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)
$ 200.00 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.
Project Cost (USD)
$ 200.00 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 Mar 30, 2024

Disclosed by Bank Feb 1, 2024

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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 project disclosure, the International Finance Corporation (IFC) is proposing an investment of up to US$200 million in a senior unsecured A Loan to Shinhan Bank Co., Ltd. (SHB) for up to 5 years with a bullet repayment and quarterly interest payments, to be committed in two tranches of US$ 100 million each.
The Project will be structured as a back-to-back financing arrangement - with the borrower being SHB, and all the proceeds to be exclusively used for on-lending to PT Bank Shinhan Indonesia (BSI or the Bank).
The Project will be in the form of a sustainability loan dedicated to finance: (i) eligible blue assets for 15% of the loan, (ii) eligible green assets for 40% of the loan, (iii) eligible social assets for 20% of the loan, and (iv) the remaining 25% to be allocated to any of the three types of eligible assets.
The Project also supports the ‘National Action Plan on Marine Debris (2017-2025)’, which calls for efforts to reduce 70% of its plastic debris from a 2017 baseline by the end of 2025.

The Project is expected to provide blue financing that will contribute to improving sustainability in fishery and/or waste leakage and reducing the amount of untreated wastewater discharge through supporting fishery improvement projects and wastewater treatment projects. Given majority Indonesia's territory at sea, keeping marine ecosystem sustainable is critical for livelihood of many Indonesians involving the ocean-related activities.
Additionally, financing demand for climate mitigation and adaptation projects remains unmet and the Project is anticipated to increase the availability of green financing and to contribute to reduction of GHG emissions by supporting projects involving renewable energies, green mobility, etc. Last but not least, on the Project level, this investment is also expected to bridge the MSME financing gap though social loans.

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.

As stated by the IFC, the project will support only medium/medium-low E&S risk sub-projects and has been categorized as FI-2 in accordance with IFC’s Sustainability Policy.

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.

As stated by the IFC, BSI is 99%-owned by SHB, with the remaining 1% owned by PT Metropanca Gemilang (0.53%) and PT STM Tunggal Jaya (0.47%). SHB is the third largest commercial bank in South Korea in terms of assets (KRW497.2 trillion or US$377 billion as of 30 June 2023). As of June 2023, SHB operates 739 branches worldwide, including 17 overseas branches (excluding the subsidiaries’ branches) and 10 overseas subsidiaries. SHB is 100%-owned by SHFG, the second largest financial group in South Korea. SHFG aspires to achieve net zero in financed emission by 2050 and achieve green financing of KRW30 trillion (US$22 billion) by 2030 from current KRW6.6 trillion (US$4.9 billion) green financing as of December 2022.


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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - PT Bank Shinhan Indonesia:

Seong Won Kim - Chief Financial Officer
Phone: +62-21-2975-1719
Email: kimi1009@shinhan.com
Address: International Financial Center 2, 30th and 31st Floor., Jl. Jend Sudirman Kav 22-23, South Jakarta 12920, Indonesia
Website: www.shinhan.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

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How it works