• Monday, Nov 29, 2021
  • Last Update : 02:19 am

Brac-Dutch development bank enters a financing partnership of $50M

  • Published at 09:53 pm October 27th, 2021

This is the first lending venture by an international bank for any microfinance institution in Bangladesh

Brac, the world’s number one non-governmental organization, and FMO, an entrepreneurial development bank from the Netherlands, have set a milestone by entering a financing partnership worth $50 million, as it is the first-ever direct lending to any microfinance institution of Bangladesh by any international financing institution.

Brac obtained the fund as a five-year-long credit facility in April in the current year to support its microfinance program, speakers said at a ceremony, organised at Brac Centre in Mohakhali in Dhaka on October 27.

According to a press release, the entire fund is earmarked for the financing of the microfinance portfolio of Brac.

The financing has been made in full compliance of the existing laws of Bangladesh.

The ceremony was physically attended by Anne van Leeuwen, ambassador, and Bas Blaauw, first secretary of the Kingdom of the Netherlands to Bangladesh. 

Asif Saleh, executive director of Brac, led the representation from Brac at the event. 

Tushar Bhowmik, CFO; Moutushi Kabir, director, communications; Sahed Shams Azad, chief operating officer, Microfinance Program were also present from Brac at the ceremony. 

K Mahmood Sattar, chairman, RSA Capital, was also present at the function

The FMO team was virtually present at the event. 

Asif Saleh, executive director, Brac said: “The Netherland government has been a great partner in many of our education and Water, Sanitation and Hygiene programmes. Brac microfinance programme has been playing a big role during the time of pandemic and recovery of the economy from this pandemic. We are glad that FMO came to us during this challenging time and I am appreciative of this financial partnership and partnership of trust.”

“We are delighted to receive this investment from FMO. It is a milestone achievement for the microfinance sector as a foreign bank is directly investing in a microfinance institution in Bangladesh for the first time,” said Tushar Bhowmik.

“The investment will help improve the livelihoods of people who need access to affordable financial solutions, especially in marginalized communities, in a more efficient way,” he added.

“We are thrilled to re-establish our partnership with Brac in Bangladesh by supporting their microfinance activities. The organization’s mission and vision closely resonate with FMO’s own agenda of achieving financial inclusion. The $50 million loan facility will bring funding stability to the balance sheet of Brac during a time of increasing uncertainty brought by the pandemic, and we believe it can act as a signal for more investments to take place in the microfinance sector,” said Huib-Jan de Ruijter, chief investment officer of FMO. 

The investment will help improve the livelihoods of the people who need access to affordable financial solutions, especially in the underserved and marginalized communities, said the speakers. 

Speakers from Brac expressed hope that the successful closure of this deal paved the way for such partnerships in future, expecting further strengthening the partnership with FMO.

Currently, Brac is the market leader for the microfinance sector in Bangladesh with a microfinance loan portfolio of $3.2 billion serving more than 7.4 million customers, among whom 85% are women, in more than 69,000 villages.

Facebook 59
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail