KB Financia Multi Finance, the Indonesian subsidiary of KB Kookmin Card, has become the first overseas subsidiary of a domestic loan-specialized financial company to succeed in raising funds from the International Finance Corporation (IFC).
IFC is an affiliate of the World Bank, which has offices in more than 100 countries around the world, and as of 2020, it is the largest private sector investment and development institution in emerging economies that invests $22 billion in private companies and financial institutions in developing countries to fight poverty and seek co-prosperity.
KB Kookmin Card's headquarters provided a payment guarantee in Indonesia's local currency (Rupia) loan worth $50 million (about 54.6 billion won) that its Indonesian corporation signed to mobilize.
In particular, this procurement fund is borrowed in Indonesia's local currency and the possibility of exchange risk has been removed compared to the method of transferring money after borrowing in Korea. The borrowing period is three years.
KB Kookmin Card plans to cooperate with IFC to find new financial and business opportunities by introducing "Supply Chain Finance" products to Korean companies and local companies that are having difficulty raising funds.
"As part of efforts to improve the financing structure of its overseas subsidiaries, the fund is the fruits of full-fledged consultations and due diligence for about a year since KB Financial Group Chairman Yoon Jong-kyu began discussions with high ranking IFC officials in October last year."
