Dutch development bank FMO has approved a $50 million investment in Bangladesh-based microfinance lender BRAC.
BRAC has a microfinance loan portfolio of $3.2 billion and serves more than 7.4 million customers in more than 69,000 villages, according to an FMO disclosure.
BRAC focuses on primary education, essential healthcare, and agricultural support, female empowerment, microfinance, and enterprise development, thereby creating opportunities for people at the bottom of the pyramid in Bangladesh.
The $50 million, five-year facility will be fully earmarked for the financing of the microloan portfolio of the company.
According to FMO, BRAC’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.
The Dutch development bank had earlier disclosed it was considering a $7.5 million investment in BRAC Myanmar Microfinance Company Limited, a Myanmar-based for-profit institution.
In June last year, FMO proposed a $4.8 million investment in Scatec Solar Bangladesh BV, a company incorporated in the Netherlands and 100% owner of Bangla Sun Solar Energy Limited.