SAJIDA FOUNDATIONStatus: Approved investment
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Who is our customer
Sajida Foundation was set up in 1993 as a non-profit organization, with a view to improving the quality of life in the communities through sustainable and effective intervention. Sajida is dedicated to their raison d’etre of bringing health, happiness and dignity in the lives of the less fortunate. Apart from the micro finance programs, Sajida also offers vast array of social development programs funded by grants, and donation by International Donors in the area of health, education, community welfare and women empowerment. Sajida is the 7th largest microfinance institution in Bangladesh with USD 199 million in total assets and USD 34 million in equity, as on Q3 2019. Sajida has 199 branches serving more than 340,000 customers as on Q3 2019.
What is our funding objective?
The proposed funding is a senior unsecured facility of USD 7.5 million, with a tenor of 5 years (1-year grace) from MASSIF. The loan will be used to finance Sajida’s microfinance portfolio.
Why do we fund this investment?
This transaction will fit in the MASSIF strategic investment theme of "The Unbanked" as Sajida is a microfinance institution operating in Bangladesh. This transaction will be the first DFI loan to Sajida. Short term loans form 50% of Sajida's borrowing and hence the present proposal of a 5-year loan will be highly additional to them in managing their ALM. The facility fully contributes to FMO’s goal to support SDG 10, ‘Reduced Inequalities’.
What is the Environmental and Social categorization rationale?
Sajida is a microfinance company, and given the nature and size of the loans, categorized as a FI-C client. The company does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions.
|Date||Total FMO financing|
|6/10/2022||EUR 0.03 MLN|
- Financial Institutions
- Publication date
- Effective date
- Total FMO financing
- USD 7.50 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)