Home Credit Receives IDR 1,5 Trillion Financing Facility from MUFG as Shareholder

PT Home Credit Indonesia announced a funding facility of $100 million or around IDR 1,5 trillion from MUFG Bank, Ltd., Jakarta Branch (MUFG). Home Credit will use these funds to strengthen its sustainability commitment through ESG (Environment, Social and Governance) based financing.

director Home Credit Indonesia Volker Giebitz said funding from MUFG would support the company's mission to increase financial inclusion and increase digital inclusion, especially through financing smartphone and tablets, which will create new opportunities for Indonesian people.

"This collaboration will further strengthen Home Credit's commitment to the ESG principles that have been embedded in the company while operating in Indonesia since 2013," said Giebitz in an official statement, Tuesday (19/12).

He added that this collaboration extends the list of funding facilities obtained by Home Credit from various parties, which indicates high trust in the company's commitment to implementing responsible financing practices in Indonesia.

Managing Director, Head of Corporate Investment Banking & Products for Indonesia, MUFG Bank Yuki Hayashi said, through this first financing facility for Home Credit Indonesia, his party wants to support greater financial inclusion in Indonesia. Buying a mobile device for the first time means you can have access to the internet and gain access to new opportunities in starting and growing a business and continuing your education.

"Collaboration in this ecosystem is in line with MUFG's commitment to channel a cumulative total of JPY35 trillion into sustainability-related financing globally by 2030," he added.

Apart from financing smartphones and tablets, Home Credit offers other financing, ranging from furniture, laptops, electronic equipment, car accessories and so on. In addition to goods financing, Home Credit services are also equipped with cash financing, paylater, e-wallet, and protection.

All products can be accessed via the My Home Credit application which has been downloaded by more than 17 million registered users.

Acquired by MUFG

For the record, this financing facility is the first corporate action after the completion of the Home Credit acquisition process by the MUFG consortium led by Kungsri Bank and Adira Finance in early October 2023.

In this agreement, Home Credit Group B.V agreed to sold two of his businesses in Indonesia and Thailand with a total valuation of EUR 615 million. Home Credit Indonesia's shares have been purchased by Krungsri, Adira and local partners, respectively for 75%, 10% and 15% or worth EUR 209 million. Now Home Credit Indonesia is a subsidiary of Adira Finance, a subsidiary of Bank Danamon which is an affiliate of MUFG.

Home Credit Group CEO Jean-Pascal Duvieusart said, “Now is the right time for us to hand over the baton to new shareholders who can accelerate the growth of these two exciting companies as they are entering a new phase. Both companies have played key roles in the Home Credit organization and we will watch their future growth with pride and interest.”