Proximity Finance 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
Proximity Finance (‘PF’) started in 2012 as a microfinance program under Proximity Designs (‘’PD") NGO, as an initiative following the devastating consequences of cyclone Nargys. In 2018, PF became a separate legal entity, as part of the professionalization process of PF. As of 31st of Dec 2019, PF has a loan portfolio of USD 33mln and serves 115k farmers (2016: USD 12mln and 62k active borrowers). PF provides microfinance loans to farmers through 17 branches, mainly in the Delta area (29%), the Dry Zone (54%) and the Uplands (11%) of Myanmar. Crop loans represent 87% of the portfolio with the rest as livestock (7%) migration (1%) and enterprise (4%).
What is our funding objective?
The Funding Objective is to provide a USD 5 mln loan in MMK equivalent to Proximity Finance. The funds will be used to on-lend to micro entrepreneurs in rural areas of Myanmar.
Why do we fund this investment?
This investment is highly inclusive and supports FMO strategy because funds will go to a low-income, fragile country. Proximity Finance focuses on agriculture clients in rural areas, as one of the few MFIs active in the Delta, Dry Zone, and Uplands areas, which have limited or no access to formal financing.
What is the Environmental and Social categorization rationale?
Proximity Finance is an E&S-C category client. Given the fact that 100% of its loan portfolio is used to finance small-scale agribusiness and microbusinesses. E&S risks are limited and therefore no ESAP is applicable. No exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. Average loan size is < USD 25,000.
More investments
| Date | Total FMO financing |
|---|---|
| 4/28/2021 | EUR 0.09 MLN |
| 5/28/2018 | USD 2.00 MLN |
- Region
- Asia
- Country
- Myanmar
- Sector
- Financial Institutions
- Publication date
- 1/27/2020
- Effective date
- 7/8/2020
- Total FMO financing
- USD 5.00 MLN
- Funding
- MASSIF
-
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