NMI Fund III announced the disbursement of USD 1.1 Million in the form of a Senior Loan to PT. Bina Artha Ventura ("Bina Artha"). Bina Artha is a fast-growing microfinance institution in Indonesia serving more than 150,000 mostly female clients.
More than 80% of the clients live in the rural or semi-rural areas of the island of Java. The Gross Loan Portfolio of Bina Artha is roughly USD 10 million. Targeting the poorer segment of the Indonesian microfinance market, Bina Artha’s average outstanding loan size is USD 80.
Njord Andrewes, Investment Director at NMI stated: "The Company has been able to keep a focus on its mission of serving only low-income people with little or no access to the formal financial sector, with roughly 87% of Bina Artha client households having an income per household member of less than USD 3 per day. Further, only 5% of Bina Artha clients have loans with other institutions, which shows the additionality that Bina Artha and its products bring to the Indonesian microfinance market. The combination of outreach, introduction of new products and the strong commitment to Client Protection Principles makes us delighted to become a long-term partner with this institution".
Christian Banno, CEO of Bina Artha, stated: "NMI has been following the progresses of Bina Artha since 2012 supporting together with other partners the development of our individual lending vertical and demonstrating a strong alignment with our mission and vision. We are therefore extremely happy to bring the relationship with NMI to the next level and finally start a long-term debt partnership".