Status: Approved 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

Through Bangladesh Managed Account CV, FMO will invest in ACI Motors, a market leader in the distribution of agricultural machinery in Bangladesh, and the sole distributor/manufacturer of Yamaha motorbikes in the country. The Company was formed in 2007 with a vision to increase farm mechanization, and is a subsidiary of ACI Limited, a larger conglomerate with interests in pharmaceuticals, consumer goods and agribusiness.

What is our funding objective?

FMO’s investment will be used to replace bridge financing raised to build a local manufacturing/assembly plant and to provide working capital for the Company’s financing scheme for agricultural equipment. FMO will thus support access to mechanization for farmers and help ACI Motors increase local value creation in the motorbike segment.

Why do we fund this investment?

Bangladesh is experiencing significant labour shortages during peak harvesting season, and mechanization can play a key role in increasing yields and improving farmer income. ACI Motor’s financing scheme provides access to agricultural equipment. The creation of a local assembly/manufacturing plant supports job creation and leads to import substitution. FMO’s investment is thus expected to contribute to economic growth and reducing inequalities, and indirectly to zero hunger. Additionally, the investment will be done with a new partner in Bangladesh, SDI. In executing this investment, FMO is supporting SDI in its development as a potential fund manager in Bangladesh, thus supporting the PE market in the country.

What is the Environmental and Social categorization rationale?

E&S category is B+ (medium) as the project has limited social and environmental impacts, which are site specific and mitigatable through well know and available measures. An external consultant has supported FMO in conducting E&S DD. For the project, IFC PS 1-4 are applicable. PS 5-8 are not applicable as the company is the freehold owner of the land for the project, it had never been developed prior to acquisition, and there were no ecologically sensitive receptors, indigenous people or structures of archaeological importance in the surroundings of the site.

Agribusiness, Food & Water
Effective date
Total FMO financing
USD 14.8 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)