PROXIMITY FINANCE MICROFINANCE. LTD
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
Proximity Finance (‘PF’) is a microfinance program under Proximity Designs, a social business based in Myanmar. Proximity Designs delivers affordable, income-boosting products that complement the entrepreneurial spirit of rural families. PF started as an initiative following the devastating consequences of the Nargis cyclone to help rural farmers recover. PF is the main asset of Proximity Designs (60% of Proximity Designs’s total assets). PF currently has a loan portfolio of USD 14.8mln and serves 80k farmers. PF provides microfinance loans to farmers in the Delta, Dry Zone, and Uplands areas of Myanmar. PF will become a separate legal entity by mid-2018.
What is our funding objective?
This concerns a USD 2 mln loan in MMK equivalent to Proximity Finance. The funds will be geared towards agriculture clients in rural areas of a low-income country.
Why do we fund this investment?
This investment is highly inclusive and supports FMO strategy because funds will go to a low-income, fragile country. Proximity Finance focuses on agriculture clients in rural areas, as one of the few MFIs active in the Delta, Dry Zone, and Uplands areas, which have limited or no access to formal financing.
What is the Environmental and Social categorization rationale?
Proximity Finance is an E&S C category client, given that 100% of its loan portfolio is used to finance small-scale agribusiness and microbusinesses. E&S risks are limited and therefore no ESAP is applicable. Proximity Finance is in compliance with the national law and they adhere to FMO’s Exclusion List.
More investments
| Date | Total FMO financing |
|---|---|
| 4/28/2021 | EUR 0.09 MLN |
| 7/8/2020 | USD 5.00 MLN |
- Region
- Asia
- Country
- Myanmar
- Sector
- Financial Institutions
- Effective date
- 5/28/2018
- Total FMO financing
- USD 2.00 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