IDLC FINANCE LIMITED
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
IDLCs Finance Ltd (IDLC) is the largest Non-Banking Finance Institution (NBFI) of Bangladesh. IDLC started as a leasing company and developed into an all-finance company providing access to finance for Small and Medium-sized Enterprises (SMEs). IDLC is a leader in sustainable business practices and Bangladesh’ only financial institution that is UNEPFI member. Since 2014, IDLC is FMO client with good record.
What is our funding objective?
Banks and NBFIs play a pivotal role promoting economic growth and employment by providing access to finance. The Bangladeshi economy is built on SMEs, with NBFIs in particular playing a role to unlock the potential of the approximately six million largely unbanked SMEs.
Why do we fund this investment?
IDLC is the largest NBFI in Bangladesh, challenging the banks with swift turnaround times and front-runner in sustainability. FMO caters to the need of IDLC with long-term funding, scarce for NBFIs. More importantly, FMO also supports IDLC in its on-going effort to mainstream environmental and social risk management in its investment decisions. IDLC is a strategic partner in promoting sustainability in the financial sector and engaging clients in adopting international best practices.
What is the Environmental and Social categorization rationale?
This project is categorized as an A-risk project(High risk). Since FMO’s initial intervention, IDLC’s loan portfolio has grown significantly. While its investments in sectors such as Textiles and RMG, Iron and steel, Pharmaceuticals, Power, Paper, Cement, Leather production are crucial for the country’s development, they also pose increased environmental and social risks such as labor concerns, workplace health and safety, waste water pollution and community unrest. IDLC recognizes these potential risks and is committed to implement good business practices and engaging in robust partnership with various stakeholders to effectively manage and turn them into business opportunities. IDLC has a fully operational Environmental and Social Management System (ESMS) which is a living framework and subject to continuous improvement with the changing landscape in the Bangladeshi market. FMO will continue to support IDLC in this important change process so that it remains in the forefront as a market leader in sustainable finance.
More investments
| Date | Total FMO financing |
|---|---|
| 1/15/2019 | USD 17.30 MLN |
- Website customer/investment
- http://www.idlc.com
- Region
- Asia
- Country
- Bangladesh
- Sector
- Financial Institutions
- Effective date
- 1/12/2017
- Total FMO financing
- USD 40.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A