LEAPFROG II INCLUSION HOLDINGS
Who is our client
FMO will invest in LeapFrog II Inclusion Holdings, a special purpose vehicle set up to invest in Indonesian multi-finance platform, PT Reliance Capital Management. Reliance is an insurance company (general, health and life) that also offers retail securities and loan products and is in the process of buying a 40% stake in local Indonesian bank Bank Kesejahteraan.
Together, FMO and Leapfrog will provide funding that will be used to capitalize Bank Kesejahteraan, improve IT systems in the insurance business and provide financing to Reliance's multi-finance platform.
Why we fund this project
Less than 19.6% of Indonesians (250 million people) currently have a bank account. At the same time, insurance penetration is at a mere 1.8%. Reliance currently reaches out to 450,000 direct clients, a figure that will increase after the acquisition of Bank Kesejahteraan. Through this transaction, FMO offers access to finance in a largely underserved market.
- Financial Institutions
- Signing date
- Total FMO financing
- USD 8.25 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)