THE FIRST MICROFINANCEBANK AFGHANISTAN
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
FMFB-A is the largest MFI and among the top 3 commercial banks in Afghanistan operating across 80 districts and 14 provinces with 48 outlets serving around 55,000 borrowers and 115,000 depositors. An existing client of FMO and MASSIF, FMFB-A is recognized for its values-led commitment to financial inclusion, emphasis on sustainable development and safeguarding the environment. FMFB-A is the first in the country and fourth in Asia to become a member of the Global Alliance for Banking on Values (GABV), of which FMO is also a member.
What is our funding objective?
Since August 2021, all banks are required to undergo a transition from conventional banking to Islamic Principles based banking. FMO provides a grant to support its client in its conversion of becoming a Shariah compliant bank, offering exclusively Islamic banking products and services. The project will be implemented by two partnering consultancies: Avrio Impact and IFAAS (Islamic Finance Advisory & Assurance Services).
Why do we fund this investment?
This project contributes to MASSIF’s impact objectives of inclusive development in one of the most fragile countries worldwide. This project supports FMFB-A in their mission to keep providing access to financial services to poor and underserved Afghans.
More investments
| Date | Total FMO financing |
|---|---|
| 2/5/2024 | EUR 3.50 MLN |
| 3/7/2023 | USD 5.00 MLN |
- Region
- Asia
- Country
- Afghanistan
- Sector
- Financial Institutions
- Effective date
- 12/14/2021
- Total FMO financing
- EUR 0.23 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