KUALA LUMPUR (Mar 17): Private equity firm Creador II LLC said its affiliate PT Creador Kapital has invested IDR290 billion (RM81.1 million) for a 20% stake in Indonesian-based PT Bank Index Selindo.

In a statement today, Creador said Bank Index is a national private commercial bank providing working capital and investment loans to Small Medium Enterprises (SME) companies.

It added that the bank, which commenced operations in 1993, has the capacity and platform - with its 44 branches across Indonesia - to be a leading SME-focused bank in Indonesia.

“We are excited about our investment in Bank Index not only because the banking sector is attractive but also because it is a leading bank in the SME segment – a segment that has a strong growth trajectory and is the backbone of the Indonesian economy,” said Creador senior managing director Cyril Noerhadi.

“Our investment in Bank Index is in line with Creador’s strategy in investing in high growth, quality businesses as a strategic minority investor. We aim to support the bank to further develop and accelerate its business,” he added.

In the same statement, Bank Index president director Charlie Paulus said Creador’s investment in the Bank Index reflects the bank’s financial strength and potential to become a world-class financial institution.

With Creador’s investment, Bank Index has increased its equity to IDR900 billion (RM251.7 million), helping the bank lift its capital adequacy ratio to 22.2% and positioning it well to continue its growth, said Creador.

Bank Index, added Creador, has been growing aggressively over the past five years while maintaining a healthy net interest margin of 5%, with a low level of non-performing loan ratio of 0.4%.