Aavishkaar Capital invests $5m in Midland Bank

Aavishkaar Capital invests $5m in Midland Bank

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, has invested US$5 million from the ESG First Fund into Midland Bank.
This was Aavishkar’s fifth investment in partnership with KfW, a German state-owned development bank, according to a press release.
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.

Midland Bank 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 endeavours to enhance and elevate the ESG practices of the supported borrowers.
Midland Bank’s Managing Director and CEO Md Ahsan-uz Zaman, and Abhishek Mittal, partner of Aavishkaar Capital signed the agreement on behalf of their respective organisations at the bank head office recently.
Md Ahsan-uz Zaman 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 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”.
Aavishkaar Capital’s Abhishek Mittal said, “We are thrilled to announce our investment in Midland Bank and our dedication to support both the bank and the underlying borrowers of this facility in their upcoming growth phase, while also enhancing their ESG practices.”
Markus Aschendorf, director, Global Head 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,” he added.

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