Project detail - ONE BANK LIMITED

ONE BANK LIMITED

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Who is our client

ONE Bank Limited (OBL) is a private commercial bank in Bangladesh. It is a well-performing, strongly growing mid-sized bank with good governance in a growing market. To promote the growing Offshore Bank Unit activities and fund its foreign currency generating clients, as well as its general clients in the Domestic Bank Unit, ONE Bank Limited requested for a USD term loan.

Funding objective

The facility provided to ONE Bank Limited is mostly dedicated to SMEs and Green financing. The proposed USD term loan provides stability in ONE Bank Limited’s funding base and provides access to international financiers going forward. As part of our long-term partnership, ONE Bank Limited agreed upon an Environmental and Social Action Plan which will take the Environmental and Social Management Systems to the next level.

Why we fund this project

ONE Bank Limited, being a robustly growing bank in a Low Middle Income Country, acknowledges that financing of entrepreneurs has a tremendous development impact. The financing will have a positive contribution to at least four of the UN Sustainable Development Goals. SDG 1 (no poverty), 8 (decent work and economic growth), 12 (responsible consumption and production) and 13 (climate action).

Environmental and social rationale

OBL is categorized as E&S risk category A. Loan portfolio ranges from textiles and RMG, construction, shipbuilding and ship recycling, food processing to pharmaceuticals and power. Potential E&S risks includes, but not limited to poor labor conditions, occupational health and safety, industrial waste discharge and pollution, community health, safety and security. OBL is well advanced in upgrading its existing Environmental and Social Management system in line with FMO requirements and that of the Bangladesh Bank. It plans to also increase its value add by increasing its share of green investments. The bank finances Solar Home systems, effluent treatment plants, energy efficient and resource efficient technologies across its SME and corporate portfolio. FMO will continue to support OBL in its ambition to grow its green portfolio and contribute to global efforts in the transition to a low carbon economy.

More investments

Date Total FMO financing
11/7/2016 USD 15.00 MLN
Region
Asia
Country
Bangladesh
Sector
Financial Institutions
Signing date
4/11/2018
Total FMO financing
USD 30.00 MLN
Fund
FMO
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