Aavishkaar Capital invests $ 5 million in Midland Bank

Aavishkaar Capital, a concern of Aavishkaar Group, in partnership with KfW, a German state-owned development bank, has signed an agreement to invest the $5 million from its Environmental, Social and Governance (ESG) First Fund into Midland Bank.

This fund aims to not only provide financial assistance but also endeavors to enhance and elevate the ESG practices of supported borrowers.

Md Ahsan-uz Zaman, managing director and CEO of Midland Bank, and Abhishek Mittal, partner of Aavishkaar Capital, inked the deal at the former's head office in Dhaka recently, read a press release.

"The financing will support the bank and also enhance the capacity of clients in ESG practices," said Zaman.

"We are thrilled to announce our investment in Midland Bank and our dedication to supporting both the bank and the underlying borrowers of this facility in their upcoming growth phase, while also enhancing their ESG practices," said Mittal.

Markus Aschendorf, director and global head of division equity and funds at KfW, said: "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."

Nazmul Karim, country head of Aavishkaar Capital, and Md Zahid Hossain, deputy managing director of Midland Bank, Mohammad Javed Tarek khan, senior executive vice-president and head of institutional banking division, Md Zahirul Islam, senior executive vice-president and CFO, and Khondkar Towfique Hossain, senior executive vice-president and head of ID, were present.

Among others, Maruf Haider, executive vice-president and head of unit 03 institutional banking division, and Nazmul Ahsan, vice-president and head of treasury division, along with other executives and officers of both the organisations were also present.