Financial institutions

The Financial Institutions department has been updating its investment strategy, leading to achievements in both the volume invested and the diversification of project types.

Expanding our reach: a focus on LAC and new frontiers

The department boasts a strong presence in Latin America and the Caribbean (LAC). It has also made inroads into Asia with a first-time transaction with Mutual Trust Bank (MTB) in Bangladesh and EVN Finance in Vietnam. The department is currently exploring opportunities for expansion in Africa, keeping in mind the potential risks associated with less developed regulatory frameworks in Least Developed Countries (LDCs).

Embracing innovation: Fintech investments and the road ahead

The department actively embraces innovation, exemplified by a USD 10 million loan to TerraPay, a reliable, fast, and affordable digital payment infrastructure that supports interoperability among payment providers with a broad reach in Africa and Asia – a great example of fintech as a tool for financial sector digitisation. While BIO recognises the inherent risks associated with such innovative ventures, we believe the potential impact outweighs the challenges.

Looking forward:

Building resilience and impact

As a Development Finance Institution, BIO takes pride in contributing to a more resilient financial sector. Our investments are aimed not only at financial sustainability but also at fostering institutions that can weather challenges like climate risk, a growing concern in the post-pandemic world. By supporting responsible microfinance, exploring new markets, and embracing technological advancements, the Financial Institutions department is committed to making a positive and lasting impact.