Project detail - BRAC

BRAC

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Who is our client

Established in 1972 as a non-government development organization by Sir Fazle Hasan Abed, BRAC today is the largest NGO in the world in terms of people served. With a microfinance loan portfolio of USD 3.2 billion serving more than 7.4 million customers (85% women) spread across 3,200 branches in more than 69,000 villages, BRAC is the market leader in the microfinance sector in the country. BRAC through its plethora of development interventions that range from primary education, essential healthcare, agricultural support, female empowerment, microfinance, and enterprise development has acted as a catalyst, creating opportunities for people at the bottom of pyramid to break the vicious circle of poverty in Bangladesh.

Funding objective

The USD 50 million 5-year facility will be fully earmarked to the financing of microloan portfolio of the company.

Why we fund this project

This investment is in support of FMO’s inclusive strategy in Bangladesh (LDC) and more than 50% of the loan portfolio of the client is in micro-enterprise loan (< 10,000 EUR). BRAC specializes in piloting, perfecting and scaling innovation to impact the lives of underserved and marginalized people. The company’s social mission alignment has played a big role in creating a strong franchise and reputation worldwide and is closely aligned with FMO’s own development mandate.

Environmental and social rationale

E&S categorization is C as BRAC offers micro loans with an average ticket size of less than USD 3,500, hence E&S risk is limited. The company does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions.

Region
Asia
Country
Bangladesh
Sector
Financial Institutions
Signing date
3/9/2021
Total FMO financing
USD 50.00 MLN
Fund
FMO
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)
C