📋 Tender Overview
Website customer/investment
https://www.asa-international.com/
Country
Global
Sector
Financial Institutions
Publication date
4/1/2025
Effective date
3/6/2025
Total FMO financing
USD 15.00 MLN
Funding
MASSIF
Environmental & Social Category
(A, B+, B or C)
C
Who is our customer
ASA International ("the Group", "ASAI") is a leading microfinance institution dedicated to providing financial services to underrepresented populations in Africa and Asia. The Group has headquarters in Dhaka and Amsterdam and is listed on the London Stock Exchange. ASAI provides microfinance services to low-income entrepreneurs, primarily women, through 13 subsidiaries in Pakistan, India, Sri Lanka, the Philippines, Myanmar, Tanzania, Kenya, Uganda, Rwanda, Zambia, Ghana, Nigeria, and Sierra Leone.
What is our funding objective
FMO provides the Group with a USD 15 million senior facility aimed at supporting on-lending to female micro-entrepreneurs in Africa and Asia, and also support the Bank in its digital efforts aimed at allowing easier access to financial services by end clients. The facility will be 75% Reducing Inequalities.
Why do we fund this investment
The proposed facility allows FMO to support ASAI in providing socially responsible lending to low-income, predominantly female entrepreneurs in Africa and Asia, thereby reducing inequalities (RI) . The Group’s focus on gender inclusion aligns with FMO's aim to enhance financial inclusion for female micro-entrepreneurs. Additionally, the transaction facilitates the renewal of a partnership between FMO and a globally impactful Dutch-based microfinance institution known for its strong heritage in microfinance.
What is the Environmental and Social categorization rationale
E&S category C. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out. as ASAI focuses solely on microfinance and has no corporate or project finance exposure. For ASAI, inherent CPP risks due to microfinance operations are present; therefore, ASAI has a CPP Category A according to FMO policy. The ASA Model itself is structured in a way that limits CPP risks. Additionally, FMO engaged MFR to review ASAI's CPP practices and worked together with the Group to strengthen CPP safeguards further.
