Project detail - EARLY DAWN MICROFINANCE COMPANY LTD

EARLY DAWN MICROFINANCE COMPANY LTD

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Who is our client

Early Dawn (‘DAWN’) started operations as a microfinance program under the Save the Children Myanmar NGO in 2002. In 2015, following the acquisition of this program by Accion (40%), FMO (30%) and Triodos (30%), DAWN became a licensed, independent MFI. As of March 2018, they reached total assets of USD 30.4m (loan portfolio USD 28.8m), making them one of the largest MFIs (#4) in Myanmar. DAWN provides loans to the financially underserved, reaching low-income micro-entrepreneurs and small businesses across five regions in Myanmar, with a 99% female client base.

Funding objective

Our funding equivalent of USD 5 million in local currency will be fully used by DAWN to provide loans to low-income female microentrepreneurs and small businesses in peri-urban and rural areas in Myanmar. Through DAWN we can contribute to bridging this gap which focuses mainly on peri-urban and rural areas in Myanmar.

Why we fund this project

Through DAWN, FMO is able to pursue its inclusive goal, as DAWN focuses on microfinance to financially underserved women and small businesses in peri-urban and rural areas. Myanmar is one of the poorest countries in Asia and is a least developed country It also allows us to show case our commitment to the country as the first repeat transaction and demonstrate that we are a long-term partner in Myanmar. One of the main challenges for the sector is to attract sufficient funding to realise growth ambitions, which is mainly due to restrictive regulations. Therefore, additionality is derived from local currency, tenor and on-lending, as it increases the supply of finance to targeted underserved individuals.

Environmental and social rationale

DAWN´s loan book is comprised of micro and small clients, and therefore classified as a Category C client. E&S risks are limited and therefore no ESAP is applicable. Early Dawn is in compliance with the national law and they adhere to FMO’s Exclusion List.

More investments

Date Total FMO financing
10/4/2016 USD 3.00 MLN
Region
Asia
Country
Myanmar
Sector
Financial Institutions
Signing date
5/14/2020
Total FMO financing
USD 7.50 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)
C