Project detail - The First MicroFinance Bank Afghanistan

The First MicroFinance Bank Afghanistan

Status: Completed investment
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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

FMFB-A is the largest MFI and among the top 3 commercial banks in Afghanistan operating across 80 districts and 14 provinces with 48 outlets serving around 55,000 borrowers and 115,000 depositors. A long-standing client of FMO and MASSIF, FMFB-A is recognized for its values-led commitment to financial inclusion, emphasis on sustainable development and safeguarding the environment. FMFB-A is the first in the country and fourth in Asia to become a member of the Global Alliance for Banking on Values (GABV), of which FMO is also a member. In 2016, FMFB-A introduced the first female branch in Afghanistan providing financial services to women with two more of such branches to be opened in 2019/20.

What is our funding objective?

FMO's long term financing will enhance the balance sheet of the institution through diversified and stable funding. FMFB-A projects to grow rapidly in the coming years, mainly in the MSME sector and funding is required to finance the institution's growth.

Why do we fund this investment?

FMO through MASSIF supports a financially sound institution that is a leading financial services provider in one of the most non-inclusive parts of the world. FMFB-A contributes to poverty alleviation and economic development through the provision of sustainable financial services to micro and small businesses, and households. This transaction contributes in full to FMO's strategic goal of Reducing Inequalities.

What is the Environmental and Social categorization rationale?

The project has been categorized as Category C in accordance with FMO's Sustainability Policy. The project's activities are deemed to have minimal or no adverse environmental and social risks and/or impact. As part of the project, FMFB-A will be required to apply the EDFI Exclusion List and Afghanistan E&S laws and regulations.

More investments

Date Total FMO financing
12/14/2021 EUR 0.23 MLN
3/7/2023 USD 5.00 MLN
Financial Institutions
Publication date
Effective date
End date
Total FMO financing
EUR 3.50 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)