PROXIMITY FINANCE MICROFINANCE. LTDStatus: Approved investment
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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.
|Date||Total FMO financing|
|4/28/2021||EUR 0.09 MLN|
|7/8/2020||USD 5.00 MLN|
- Financial Institutions
- Effective date
- Total FMO financing
- USD 2.00 MLN
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)