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.
2023 investments in financial institutions
BIO has granted EUR 4,824 of technical assistance to ACEP Niger, a microfinance institution belonging to the Pan-African ACEP Group.
BIO has granted a USD 15 M loan to AMK Microfinance, a Cambodian microfinance institution
BIO has granted a USD 7 M loan to ASA Tanzania, a microfinance institution
BIO has granted USD 47,853 of technical assistance to Banco Guayaquil
BIO has given a USD 20 M loan to Banco Solidario, a microfinance institution in Ecuador
BIO has granted USD 16,143 of technical assistance to Banco Solidario, a microfinance institution in Ecuador
BIO has invested USD 10 M in Cooperativa Pacífico, a Peruvian lending and savings cooperative.
BIO has granted a USD 10 M loan to Financiera Finexpar, a financial institution in Paraguay
BIO has granted USD 35 K of technical assistance to Financiera FDL, a Nicaraguan microfinance institution.
BIO has granted a USD 15 M loan to NMB, a Nepali commercial bank.
BIO has invested USD 10 M in MAA General Assurance Phils Inc, a non-life insurance company in the Philippines.