44936-014: INO: HOUSING FINANCE PROGRAM

Project Data Sheet (PDS): Overview


Description

On December 1, 2010, the Board approvaed the $300 million rupiah equivalent housing finance program (HFP) for commercial banks in Indonesia. The program will be offered to eligible Indonesian private commercial banks in the form of senior loans for up to 10 years for the purpose of mortgage onlending. Technical assistance will also be offered to banks participating in the program. On 31 October 2012, a reduction in program size by $140 million was approved due to IPF constraints in 2012 and uptake related to difficulties sourcing acceptably priced local currency. This resulted in remaining capacity of $160 million for HFP To date, the HFP program has not been funded. With respect to the inclusion of PBs into the HFP, there has been a delay due to the difficulties in obtaining government approval for a local currency bond issuance and high costs in the swap market. However, over the last three to four months, swap rates have moved to a level that is attractive to local borrowers. Permata Bank has indicated interest and the deal team is moving forwward with the bank for a loan in the amount of approximately $80 million. Additionally, ADB is in discussions with Bank International Indonesia for an amount of between $75-80 million. Both banks meet the criteria of the program and IC approval will be sought for each bank prior to their participation. In light of the IPF constraints and the reduced projected utilization of the aforementioned programs, the deal team agreed to reduce the size of the program by $140 million. This reduction will result in remaining capcacity of $160 million. Read More

Country Indonesia
Borrower/Equity Investment Name HOUSING FINANCE PROGRAM
Project Number 44936-014
Project Type or Modality of Assistance PS
Financing Private sector (Nonsovereign)
Status Approved
Approval Number 7322
Approval Date 01 Dec 2010
Geographical Location Indonesia
Sector / Subsector Classification Finance
/ Banking Systems
Safeguard Categories Environment: FI
Resettlement: FI
Indigenous People: FI

 

 

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Project Data Sheets (PDS)

Responsible ADB Officer
Christine Engstrom
Request for information

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Capital Markets and Financial Sectors Division

PDS Creation Date
28 Oct 2010

Last PDS Update
16 Sep 2013

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