Project detail - LeapFrog II Inclusion Holdings

LeapFrog II Inclusion Holdings

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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.

Funding objective

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.

Region
Asia
Country
Indonesia
Sector
Financial Institutions
Signing date
9/28/2018
Total FMO financing
USD 0.06 MLN
Fund
FMO
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)
C