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 Name | Administration of Equity Investment for Fairbanc Pte. Ltd. | |||||
| Project Number | 55175-001 | |||||
| Borrower/Company | ASIAN DEVELOPMENT BANK Fairbanc Pte. Ltd. |
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| Country | Indonesia |
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| Location | Nation-wide | |||||
| Type or Modality of Assistance |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Partnerships Private sector development |
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| Sector / Subsector | Finance / Finance sector development |
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| 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. |
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| Objectives and Scope | ||||||
| Linkage to Country/Regional Strategy |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| Timetable for assistance design, processing and implementation | |
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| Concept Clearance | 01 Mar 2021 |
| Credit Committee Meeting | 31 May 2021 |
| Approval | 15 Jun 2021 |
| Last PDS Update | 17 Jun 2021 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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| Title | Document Type | Document Date |
|---|---|---|
| Administration of Equity Investment for Fairbanc Private Limited: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Apr 2021 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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Related Publications
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