Amartha
Introduction
Swedfund has provided a USD 25 million loan to Amartha, an Indonesian fintech company that offers microfinance services. The goal is to improve financial inclusion for women entrepreneurs.
The investment will help Amartha reach more women in rural areas with access to affordable financing through responsible lending. This supports local economic growth and stability, helps reduce the gap between rural and urban areas, creates jobs, and promotes digital innovation and skills development.
The loan is part of a larger syndicated facility of up to USD 199 million, led by the International Finance Corporation (IFC), a member of the World Bank Group. Of the USD55 million committed, Swedfund is committing USD 25 million, Finnfund USD 15 million, and BIO USD 15 million.
Read more in our press release: Amartha improves access to finance for women in rural Indonesia
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Sector
Financial Inclusion
Financial Inclusion invests in, amongst others, regulated banks and microfinance institutions to reach out more broadly and effectively.
Value creation
Impact
The investment promotes inclusive growth and socio-economic development by providing access to finance and training for underserved women and rural communities. Through digital solutions, Amartha expands its impact and supports women’s economic empowerment and local development.
Additionality
Swedfund’s investment is financially additional by providing financing to a microfinance and peer-to-peer lending platform in Indonesia that focuses on women who lack access to financial services. It brings additional impact by helping Amartha strengthen its work on E&S-standards, impact management, and business integrity.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG risk
E&S risk categorisation is Medium Risk (FI-B) based on potential risks related to labour conditions and occupational safety and health, as well as contextual client protection and risks related to the sector and country of operation.
ESG Mitigation Measures
Swedfund is supporting the company in aligning its E&S and Human Resources policies with best practice and aligning with industry standards in terms of Client Protection.
Applicable IFC Performance Standards
Standards: IFC Performance Standards 1-4 are applicable for the activities funded by our investment.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.