Project detail - THE FIRST MICROFINANCEBANK AFGHANISTAN

THE FIRST MICROFINANCEBANK AFGHANISTAN

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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. An existing 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.

Funding objective

Since August 2021, all banks are required to undergo a transition from conventional banking to Islamic Principles based banking. FMO provides a grant to support its client in its conversion of becoming a Shariah compliant bank, offering exclusively Islamic banking products and services. The project will be implemented by two partnering consultancies: Avrio Impact and IFAAS (Islamic Finance Advisory & Assurance Services).

Why we fund this project

This project contributes to MASSIF’s impact objectives of inclusive development in one of the most fragile countries worldwide. This project supports FMFB-A in their mission to keep providing access to financial services to poor and underserved Afghans.

More investments

Date Total FMO financing
7/22/2019 EUR 3.50 MLN
7/25/2017 USD 5.00 MLN
Region
Asia
Country
Afghanistan
Sector
Financial Institutions
Signing date
12/14/2021
Total FMO financing
EUR 0.23 MLN
Fund
MASSIF
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