BRAC
Status: Approved investmentWhy disclosure?
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In case of questions
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
Established in 1972 as a non-government development organization by Sir Fazle Hasan Abed, BRAC today is the largest NGO in the world in terms of people served. With a microfinance loan portfolio of USD 3.2 billion serving more than 7.4 million customers (85% women) spread across 3,200 branches in more than 69,000 villages, BRAC is the market leader in the microfinance sector in the country. BRAC through its plethora of development interventions that range from primary education, essential healthcare, agricultural support, female empowerment, microfinance, and enterprise development has acted as a catalyst, creating opportunities for people at the bottom of pyramid to break the vicious circle of poverty in Bangladesh.
What is our funding objective?
The USD 50 million 5-year facility will be fully earmarked to the financing of microloan portfolio of the company.
Why do we fund this investment?
This investment is in support of FMO’s inclusive strategy in Bangladesh (LDC) and more than 50% of the loan portfolio of the client is in micro-enterprise loan (< 10,000 EUR). BRAC specializes in piloting, perfecting and scaling innovation to impact the lives of underserved and marginalized people. The company’s social mission alignment has played a big role in creating a strong franchise and reputation worldwide and is closely aligned with FMO’s own development mandate.
What is the Environmental and Social categorization rationale?
E&S categorization is C as BRAC offers micro loans with an average ticket size of less than USD 3,500, hence E&S risk is limited. The company does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions.
- Region
- Asia
- Country
- Bangladesh
- Sector
- Financial Institutions
- Publication date
- 9/25/2020
- Effective date
- 3/9/2021
- Total FMO financing
- USD 50.00 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) - C