Indonesia: Administration of Equity Investment for Fairbanc Pte. Ltd.

Nonsovereign Project | 55175-001

The transaction involves the administration by the Asian Development Bank (ADB) of an equity investment of up to the equivalent of $2,000,000, with an initial investment of up to $500,000 in a non-operating holding company called Fairbanc Pte Ltd (Fairbanc) in Singapore to expand its operations in Indonesia (conducted through its operating Indonesian subsidiary, PT Fairbanc Technologies Indonesia), to be provided by the ADB Ventures Investment Fund 1 under the ADB Ventures Financing Partnership Facility. The balance of the approved equity amount may be invested in subsequent fundraising rounds that Fairbanc is expected to undertake by June 2024. Consistent with the establishment arrangements for the fund, ADB will not invest its own capital alongside the fund.

Project Details

  • Project Officer
    Mellor, Dominic P.

    Request for information
  • Approval Date
    15 June 2021
  • Country
    Indonesia
  • Sector
    • Finance
Project Name Administration of Equity Investment for Fairbanc Pte. Ltd.
Project Number 55175-001
Borrower/Company ASIAN DEVELOPMENT BANK
Fairbanc Pte. Ltd.
Country Indonesia
Location Nation-wide
Type or Modality of Assistance
Equity ADB Ventures Investment Fund 1 USD 0.00 Proposed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Finance sector development

Gender Equity and Mainstreaming Gender equity
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Mellor, Dominic P.
Project Sponsor(s)
Description

The transaction involves the administration by the Asian Development Bank (ADB) of an equity investment of up to the equivalent of $2,000,000, with an initial investment of up to $500,000 in a non-operating holding company called Fairbanc Pte Ltd (Fairbanc) in Singapore to expand its operations in Indonesia (conducted through its operating Indonesian subsidiary, PT Fairbanc Technologies Indonesia), to be provided by the ADB Ventures Investment Fund 1 under the ADB Ventures Financing Partnership Facility. The balance of the approved equity amount may be invested in subsequent fundraising rounds that Fairbanc is expected to undertake by June 2024. Consistent with the establishment arrangements for the fund, ADB will not invest its own capital alongside the fund.

Fairbanc is a financial technology (fintech) company with primary operations in Indonesia that partners with fast-moving consumer goods (FMCG) distributors to offer digital micro-credit to micro, small, and medium-sized enterprises (MSMEs) for inventory purchases. Fairbanc's proprietary data science and machine learning platform leverages supply-chain data of FMCG distributor partners which allows financial institutions to assess credit risk and extend working capital to MSMEs with limited credit history and collaterals. Increased access to financial services and improved inventory management for MSMEs increase the resilience to adverse shocks, including climate relates shocks, of store owners and their extended family. Fairbanc's mission to bridge the MSME credit gap in emerging markets aligns with ADB's operational priorities of achieving greater financial inclusion and building climate and disaster resilience in Asia and the Pacific.

Objectives and Scope
Linkage to Country/Regional Strategy
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 01 Mar 2021
Credit Committee Meeting 31 May 2021
Approval 15 Jun 2021
Last PDS Update 17 Jun 2021

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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