31958 - bKash

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Summary of Investment Information

Project Number

31958

Company Name

BKASH LIMITED

Date SPI Disclosed

Aug 27, 2012

Country

Bangladesh

Region

South Asia

Projected Board Date

Sep 28, 2012

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Nov 30, 2016

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Dec 20, 2012
Signed : Apr 7, 2013
Invested : Jul 3, 2013

Sector

Other (Including Satellite Telecommunications, Radio and Television Broadcasting, etc.)

Project Description

bKash Limited (“bKash” or the “Company”) is a mobile payment joint venture in Bangladesh between BRAC Bank (51% shareholding) and Money in Motion (49% shareholding). The Company intends to leverage the distribution network of its partners and work with mobile network operators to offer a mobile payment platform that would enable financial services across rural and urban areas in Bangladesh. The Company launched operations in July 2011 and currently has a subscriber base of around 443 thousand customers. IFC is considering a potential equity investment of up to US$10 million in bKash.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

Development Impact

The project will have the following development impacts:

- Increased access to finance through mobile payment: The project is intended to increase access to finance through mobile payment/banking to broader segments of the country including the unbanked and the base of the pyramid.

-Enabling integration into the formal banking system: The project will help develop a track record of banking transactions for the bKash customers and aid their eventual integration into the formal banking system and access other financial services such as credit and insurance

- Facilitating commerce: The Project will help create a mobile banking/payment platform that will reduce transaction costs and overcome geographic barriers, helping to facilitate commerce in the country amongst broader segments of the population.

IFC''s additionality in the proposed investment will be as follows:

- Global industry knowledge and expertise: The Company will benefit from IFC''s knowledge and expertise in the payments and mobile banking space gained from investment and advisory experience and also from IFC''s network of portfolio clients including telcos, financial institutions, and service providers.

- Capital facilitation and demonstration effect: By investing in a nascent business model as a long-term strategic partner in a market with limited financing options, IFC will not only fill the financing gap but also will provide comfort to other potential providers of capital.

E&S Category Rationale / Risks and Mitigation

The project involves an equity investment of up to US$10 million in bKash. bKash is a mobile payment company. The main E&S risks of mobile payment operations is limited to exposure to IFC Exclusion List activities. There is a possibility of company extending transaction platform services or entering into strategic corporate partnership with a client engaged in exclusion list activities. Overall, the company operations present minimal adverse environmental or social risks or impacts. Hence, the project is categorized as FI-3. The applicable Performance requirements will be the IFC- FI Exclusion List.

The company does not have an E&S risk management system at present and will be required to put in place screening procedures for Exclusion List. The company will also upgrade its HR policy.

Contacts

For Inquiries About the Project, Contact

Kamal Quadir, Chief Executive Officer, bKash Limited

Address:
6, Gulshan Avenue (4th Floor), Block- SW(H)
Gulshan- 1, Dhaka- 1212
Bangladesh

Telephone: +88-02-9860560
Email: mailto:kamal@bkash.com
Fax: +88-02-9894916
Website: http://www.bkash.com

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Fax: 202-974-4384
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Local Access of Project Documentation

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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