news - FMO supports entrepreneurs in Bangladesh

ONE Bank Limited (“OBL”) has entered into a Term Loan Agreement with FMO, OFID, and OeEB for USD 44 million for a 5-year term. This loan will assist OBL to grow its US dollar balance sheet, its SME book and its Green financing portfolio. In addition to the loan, the three renowned Development Financial Institutes will assist OBL to improve its Environmental, Social, and Safety standards.

OBL’s Managing Director and CEO, Mr. Fakhrul Islam, on the occasion said, “This loan from FMO, OFID and OeEB will not only strengthen our balance sheet, but also will improve OBL’s footprint in the banking industry and improve our Environment, Health and Safety standards.”

On the occasion of signing the Agreement FMO’s Chief Investment Officer Linda Broekhuizen commented, “Sustainable financing of Bangladesh’s entrepreneurs has a tremendous positive development impact and will contribute to the aspirational UN Sustainable Development Goals. FMO is proud to partner with OBL in its ambitions to grow its SME activities and activities in Green.”

The term financing was jointly arranged by FMO and RSA Capital.

OBL is a publicly listed third generation bank operating in Bangladesh serving a wide range of clients and providing full retail and corporate banking services. ONE Bank Limited’s vision is to become a role model in the Bangladeshi banking sector, to meet the needs of the customers as well as the staff and overall create shareholder value. 

FMO is the Dutch development bank funded by the Dutch government who has already invested heavily in Bangladesh, and has been a partner to Bangladesh for over 30 years.  

OFID, The Opec Fund for International Development, has been established by the member states of OPEC in 1976 as a collective channel to aid the developing economies.  OFID works in cooperation with partners across the developing countries to stimulate economic growth and alleviate poverty.  

OeEB, founded in 2008, is the official development bank of the Republic of Austria, publicly mandated to improve people’s living conditions in developing countries. Providing long term loans is one of the ways OeEB helps development and job creation in the developing countries.

RSA Capital is a premier structured finance, M&A and private equity advisory house with a focus on Bangladesh and the region. It aims to create financial and strategic value by providing original and inventive solutions by leveraging its extensive experience in structured finance, fixed-income and corporate advisory services.