Ashurst represents US based impact investment firm Community Investment Management on landmark US$100 million social loan
26 June 2023
Global law firm Ashurst advised Community Investment Manager ("CIM"), a US based institutional impact-focused, debt-capital provider, on its asset-backed US$100 million social loan to PT Amartha Mikro Fintek ("Amartha"), Indonesia's rising microfinancing fintech platform.
This transaction marks several milestones, including being one of the first few social loans to an MSME-lending platform in Indonesia. CIM supports the growth and development of responsible and transparent innovation in digital finance.
As an institutional social impact investor, CIM operates within the scope of Article 9 of the European Sustainable Finance Disclosure Regulation (SFDR) which requires disclosure of sustainability information relating to its financial products.
The use of proceeds of CIM's social loan is in line with the most recent LMA / APLMA / LSTA Social Loan Principles 2023, a globally recognized methodology designed for participants in the sustainability financing market to systematically certify, track, and monitor the social impact of financing assets.
Lead partner Jean Woo commented, "This is a great example of a social impact financing. Our client CIM is working with Amartha to improve access to finance for the underserved such as economically disadvantaged communities, lower educational backgrounds, and rural villages in Indonesia. Rizaldy and I are really delighted to be given the opportunity to work alongside stakeholders to structure, document and finalise this significant deal between a US based impact investor and an Indonesian microfinance technology company."
The transaction was led by Ashurst's Singapore and Jakarta office managing partners, Jean Woo and Rizaldy Tauhid respectively, with the support from Jake Sng and Chandra Setyabrata.
