Indonesias INA, Japans DBJ Launch Hybrid Fund for Mid-Sized Businesses

Indonesia Investment Authority (INA), the countrys first sovereign wealth fund, and the Development Bank of Japan (DBJ) have launched a hybrid fund to provide financing for medium-sized businesses in Indonesia. The fund will focus on senior secured investments, offering tailored financing solutions to mid and upper-market corporates while providing resources for businesses to scale in a sustainable manner, the two companies said in a joint statement on Monday (17/02). Hybrid capital solutions, which use debt and equity to address the capital requirements of businesses, have been gaining momentum across the Asia-Pacific region as an alternative to traditional financing.

INA will leverage its local market understanding and structured financing capability, while DBJ will bring its finance and investment experience and Japan-related business networks to generate private sector investment in the largest economy in Southeast Asia.