One Bank Limited
Status: Completed investmentWhy disclosure?
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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
ONE Bank Limited (OBL) is a private commercial bank in Bangladesh. It is a well-performing, strongly growing mid-sized bank with good governance in a growing market. To promote the growing Offshore Bank Unit activities and fund its foreign currency generating clients, as well as its general clients in the Domestic Bank Unit, ONE Bank Limited requested for a USD term loan.
What is our funding objective?
The facility provided to ONE Bank Limited is mostly dedicated to SMEs and Green financing. The proposed USD term loan provides stability in ONE Bank Limited’s funding base and provides access to international financiers going forward. As part of our long-term partnership, ONE Bank Limited agreed upon an Environmental and Social Action Plan which will take the Environmental and Social Management Systems to the next level.
Why do we fund this investment?
ONE Bank Limited, being a robustly growing bank in a Low Middle Income Country, acknowledges that financing of entrepreneurs has a tremendous development impact. The financing will have a positive contribution to at least four of the UN Sustainable Development Goals. SDG 1 (no poverty), 8 (decent work and economic growth), 12 (responsible consumption and production) and 13 (climate action).
What is the Environmental and Social categorization rationale?
OBL is categorized as E&S risk category A. Loan portfolio ranges from textiles and RMG, construction, shipbuilding and ship recycling, food processing to pharmaceuticals and power. Potential E&S risks includes, but not limited to poor labor conditions, occupational health and safety, industrial waste discharge and pollution, community health, safety and security. OBL is well advanced in upgrading its existing Environmental and Social Management system in line with FMO requirements and that of the Bangladesh Bank. It plans to also increase its value add by increasing its share of green investments. The bank finances Solar Home systems, effluent treatment plants, energy efficient and resource efficient technologies across its SME and corporate portfolio. FMO will continue to support OBL in its ambition to grow its green portfolio and contribute to global efforts in the transition to a low carbon economy.
More investments
| Date | Total FMO financing |
|---|---|
| 11/22/2021 | USD 15.00 MLN |
- Region
- Asia
- Country
- Bangladesh
- Sector
- Financial Institutions
- Effective date
- 4/11/2018
- End date
- 4/13/2023
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
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