Project detail - THE FIRST MICROFINANCEBANK AFGHANIS

Who is our client

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.

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 we fund this project

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.

Environmental and social 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
7/25/2017	USD 5.00 MLN