EARLY DAWN MICROFINANCE COMPANY LTD
Status: Approved 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
Early Dawn (‘DAWN’) started operations as a microfinance program under the Save the Children Myanmar NGO in 2002. In 2015, following the acquisition of this program by Accion (40%), FMO (30%) and Triodos (30%), DAWN became a licensed, independent MFI. As of March 2018, they reached total assets of USD 30.4m (loan portfolio USD 28.8m), making them one of the largest MFIs (#4) in Myanmar. DAWN provides loans to the financially underserved, reaching low-income micro-entrepreneurs and small businesses across five regions in Myanmar, with a 99% female client base.
What is our funding objective?
Our funding equivalent of USD 5 million in local currency will be fully used by DAWN to provide loans to low-income female microentrepreneurs and small businesses in peri-urban and rural areas in Myanmar. Through DAWN we can contribute to bridging this gap which focuses mainly on peri-urban and rural areas in Myanmar.
Why do we fund this investment?
Through DAWN, FMO is able to pursue its inclusive goal, as DAWN focuses on microfinance to financially underserved women and small businesses in peri-urban and rural areas. Myanmar is one of the poorest countries in Asia and is a least developed country It also allows us to show case our commitment to the country as the first repeat transaction and demonstrate that we are a long-term partner in Myanmar. One of the main challenges for the sector is to attract sufficient funding to realise growth ambitions, which is mainly due to restrictive regulations. Therefore, additionality is derived from local currency, tenor and on-lending, as it increases the supply of finance to targeted underserved individuals.
What is the Environmental and Social categorization rationale?
DAWN´s loan book is comprised of micro and small clients, and therefore classified as a Category C client. E&S risks are limited and therefore no ESAP is applicable. Early Dawn is in compliance with the national law and they adhere to FMO’s Exclusion List.
More investments
| Date | Total FMO financing |
|---|---|
| 8/29/2019 | USD 3.00 MLN |
- Region
- Asia
- Country
- Myanmar
- Sector
- Financial Institutions
- Publication date
- 6/15/2018
- Effective date
- 5/14/2020
- Total FMO financing
- USD 7.50 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) - C