GoTo to receive US$150 million investment in partnership with World Bank’s IFC
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INDONESIAN tech giant GoTo will receive up to US$150 million in investment from a partnership with the International Finance Corporation (IFC), the World Bank’s investment arm.
The investment comprises US$125 million from IFC and US$25 million from private investment firm Franke & Company, and will go towards the company’s efforts to enhance financial inclusion and sustainability across Indonesia.
The partnership will also provide non-financial support for GoTo, the parent company of Gojek and Tokopedia, to transition to electric vehicles (EVs) for its drivers and delivery riders, boost operational efficiency, and move towards carbon neutrality.
GoTo currently has an EV trial in South Jakarta, as well as initiatives to support financial inclusion for its drivers and merchants, the company said. It is cutting down on packaging and single-use waste from its on-demand and e-commerce services, and moving towards renewable energy for its direct operations.
GoTo will receive the funds by issuing new shares to an independent entity, Bhinneka Holdings (22), in a non-pre-emptive capital increase.
GoTo’s shareholders in June approved an increase in the company’s capital without pre-emptive rights – the first right for existing shareholders to buy new shares in an issuance – at a maximum of 10 per cent of the issued and paid-up capital.
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GoTo will also issue structured private notes to Bhinneka. Bhinneka will concurrently issue equity-linked bonds amounting to US$150 million to IFC and Franke & Company.
These bonds can be exchanged for Series A shares of GoTo, to be owned by Bhinneka at an exchange price of 135 rupiah. The bonds have a coupon of 5 per cent per annum, payable semi-annually until it matures in October 2028.
Euan Marshall, IFC country manager for Indonesia and Timor-Leste, said: “We see this investment as making an important contribution to amplifying efforts (to address the climate crisis and provide for job creation and sustainable economic growth), and also underscoring the power of technology and digitalisation in improving lives and livelihoods across Indonesia.”
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