Prime Bank PLC
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
Prime Bank PLC (“PB”) is one of the leading private commercial banks in Bangladesh. Established in 1995, PB has a longstanding track record of offering high-quality and impact-driven banking services to Corporate, MSME and Retail customers, both in conventional and Islamic modes.
What is our funding objective?
FMO offers PB a senior and unsecured loan of up to USD 50 million, divided up into a committed and uncommitted tranche. The proceeds support portfolio growth and will be used for onward lending to SMEs and eligible green projects.
Why do we fund this investment?
This project qualifies for a partial green label and an 100% RI label given the current Least Developed Country status of Bangladesh. Specifically, sixty percent (60%) of the loan facility will be on-lent to SME borrowers and for at least forty percent (40%) of all SME sub-loans to Agriculture, Women and Youth sub-borrowers. The remainder (40%) of the facility will be dedicated to supporting green projects as per FMO’s eligibility criteria.
What is the Environmental and Social categorization rationale?
PB is categorized as E&S Cat. A. The classification is mainly substantiated by the significant exposure to the ready-made garment sector (RMG), which has a recent history of workplace health and safety incidents and fatalities. Prime has a large corporate portfolio. From an E&S perspective, the majority of the sectors that the bank is exposed to carry a medium risk profile. Potential E&S risks are primarily site specific, such as workers health and safety, child labour, water and waste pollution and levels of GHG emissions. FMO has agreed an environment and social action plan (“ESAP”) with PB, which aims to support the bank on the quality of E&S practices, and the development of grievance mechanisms, with a focus on the RMG sector.
More investments
| Date | Total FMO financing |
|---|---|
| 7/10/2018 | EUR 0.01 MLN |
| 2/4/2020 | USD 25.00 MLN |
- Website customer/investment
- http://www.primebank.com.bd
- Region
- Asia
- Country
- Bangladesh
- Sector
- Financial Institutions
- Publication date
- 1/24/2024
- Effective date
- 12/14/2023
- Total FMO financing
- USD 25.00 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