Shinhan ID Debt

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 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). The Project is well aligned with World Bank Group’s (WBG) Indonesia Country Partnership Framework (CPF) for FY2021-2025, which highlights the importance of targeted interventions in Micro, Small and Medium Enterprises (MSME) space and contains climate change as one of its cross-cutting themes. 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.  SHB, the third largest bank in South Korea, is a long-standing strategic partner of IFC, with SHB participating in IFC B-loan syndications since 2012 and in IFC AMC Funds. As a strategically important subsidiary of SHB in the region, BSI will deliver development impacts in Indonesia through expanding blue, green and social lending businesses, utilizing the proceeds of the Project.