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Case StudyCASE STUDY: ALAMI and ICS offer Islamic financing to healthcare sector

CASE STUDY: ALAMI and ICS offer Islamic financing to healthcare sector

Shariah compliant peer-to-peer platform ALAMI and small business lending fintech company Impact Credit Solutions (ICS) have collaborated to provide Islamic financing to hospitals, clinics, pharmacies and other players in Indonesia’s healthcare supply chain.

The two fintech companies signed an agreement to offer up to the local currency equivalent of US$20 million (IDR284.96 million) to the healthcare sector under the Indonesian Resilience Fund. ICS had launched the fund, which is worth US$40 million, in March 2021 to support the country’s healthcare system as well as other small businesses during the COVID-19 pandemic through funding from local and international investors.

In the Islamic tranche of the credit facility, ALAMI acts as the borrower and ICS the debt provider. Under the agreement, ALAMI will leverage ICS’s Shariah compliant lending technology to underwrite invoice-backed facilities, enabling end-to-end lending, increasing disbursement speed and providing investors with real-time transparency on their loan books. A total of US$3.3 million or IDR47 billion in Islamic financing facilities have been disbursed in the pilot phase.

Dima Djani, CEO of ALAMI, told IFN: “Invoice financing uses the Wakalah Bil Ujrah structure as stipulated by the Dewan Syariah Nasional — Majelis Ulama Indonesia Fatwa No 117. The average tenor is three months, the average Ujrah rate is equivalent to 15% per annum and the consideration depends on our risk team’s view of the transactions and payors. The structure with ICS is, however, Mudarabah Muqayyadah.”

This is the first Shariah compliant transaction under the Indonesian Resilience Fund, and a vote of confidence from ICS for ALAMI and its track record for underwriting Islamic facilities, Dima noted.

“Partnering with purpose-driven fintechs, like ALAMI, is enabling us to deliver the needed liquidity in the healthcare sector, to ensure communities receive adequate medical care during this pandemic,” said Dewi Wiranti, the Indonesia country head at ICS.

“ICS’s lending solution enables us to launch digital loan products that meet our borrower’s Shariah compliant needs. Together, we can disburse funds quickly and affordably to this key sector,” Dima added.

 ALAMI & Impact Credit Solutions’s financing agreement

27th August 2021 
Aggregate principal amountUS$20 million (IDR284.96 million)
StructureMudarabah Muqayyadah
Use of fundsFinancing the healthcare sector of Indonesia
TenorTwo years
Profit rateConfidential
Payment termsAmortizing payments
Frequency of paymentConfidential
CurrencyIndonesian rupiah
Shariah advisorIn-house Shariah scholar


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