ESG First Fund, managed by Aavishkaar Capital (Aavishkaar), an Aavishkaar Group company and a global pioneer in taking an entrepreneurship-based approach to scaling businesses for impact, set up in partnership with KfW, a German state-owned development bank, announced their fifth investment of US$ 5 Million from the ESG First Fund into Midland Bank (MDB), a press release said Tuesday.
ESG First Fund focused on investing in Emerging Asia and Africa with the mandate of generating superior Environmental, Social and Governance (ESG) outcomes and commercially viable financial returns alongside positive social impact, targeting global supply chain.
MDB and Aavishkaar Capital’s ESG First Fund have collaborated to establish an on-lending facility dedicated to supporting ESG-compliant businesses within Bangladesh’s RMG and textile value chain, catering to clients worldwide. This initiative not only aims to provide financial assistance but also endeavors to enhance and elevate the ESG practices of the supported borrowers.
Md. Ahsan-uz Zaman, Managing Director & CEO of MDB and Mr. Abhishek Mittal, Partner of Aavishkaar Capital represented respective organizations on Thursday, March 21, 2024, in the signing ceremony held at the Bank Head Office. Md. Zahid Hossain, Deputy Managing Director, Mohd. Javed Tarek khan, SEVP & Head of Institutional Banking Division, Md. Zahirul Islam, SEVP & CFO, Khondkar Towfique Hossain SEVP & Head of ID, Maruf Haider, EVP & Head of Unit 03 Institutional Banking Division, Nazmul Ahsan, VP & Head of Treasury Division from Midland Bank, and Nazmul Karim, Country Head of Aavishkaar Capital were also present at the occasion along with other Executives and Officers of both the organizations.
Md. Ahsan-uz Zaman, Managing Director and CEO, Midland Bank said, “Midland Bank, with our motto of being a Bank for exclusive growth, strives to extend financial services to all segments of customers. The compliance culture deeply rooted in our investment philosophy enables not only to do business with customers who have utmost commitment to Environmental, Social, and Governance (ESG) practices but also helps the bank to maintain sound profitability and capital base. The financing from ESG First Fund will support the cause of the Bank and also enhance the capacity of clients in ESG practices”.
Abhishek Mittal, Partner, ESG First Fund, Aavishkaar Capital said, “We are thrilled to announce our investment in Midland Bank PLC. and our dedication to support both the bank and the underlying borrowers of this facility in their upcoming growth phase, while also enhancing their Environmental, Social, and Governance (ESG) practices. Aavishkaar Capital eagerly embarks on the journey into structured credit products with the ESG First Fund, anticipating the opportunity to empower businesses with non-dilutive and adaptable financial solutions that perfectly align with their growth requirements.”
Markus Aschendorf, Director GlobalHead of Division Equity and Funds, KFW said “The primary aim of KfW’s investment into ESG First Fund on behalf of the German Government is to enhance environmental and social standards in companies that are integrated into global supply chains with German and European customers. We firmly believe that Midland Bank, alongside the on-lending portfolio established under this arrangement, will serve as a beacon, showcasing the positive outcomes of ESG adherence”.
