As stated by the IFC, the proposed investment comprises up to US$30 million equivalent investment in DBH Finance PLC (DBH) through subscription in a Bangladeshi Taka denominated senior bond to be issued by DBH. DBH, established in 1996, is a housing finance institution in Bangladesh that primarily provides loans for the purchase and construction of homes. The proceeds of the bond will be primarily used to grow the Company’s affordable housing portfolio. IFC may also explore supporting the Company to mobilize up to US$25 million from other investors for its bond issuance. The proposed project would contribute to affordable housing and long-term debt capital market development in Bangladesh.
The advisory project aims to support DBH in developing and strengthening the affordable housing loan product by establishing a value proposition for the affordable housing segment and helping DBH to effectively target the lower-middle income segment in the country. The project design also integrates the adoption of digital tools and infrastructure in affordable housing finance. Under the project, IFC will assist DBH to:
i) Assess their current state of the business model and operations in affordable housing finance as well as digital capabilities;
ii) Introduce international best practices in client sourcing, underwriting, servicing, portfolio management, and capacity-building programs to strengthen the affordable housing product and services and penetrate deeper into the affordable housing market in the country;
iii) Enhance DBH's home loan credit assessment procedures by focusing on informal income assessment for affordable home loans; and
iv) Accelerate digital adoption and data analytics to reduce cost, offer faster and better delivery of customer services and improve the portfolio.
The IFC categorized the project as FI-3.
As stated by the IFC, as of 30th June 2023, the key shareholders of DBH include BRAC (18.4%), Delta Life Insurance (17.6%), Green Delta Insurance (15.3%). The balance is held by the public (11.6%), 14 foreign investors (18.2%), and nearly 200 financial institutions (18.9%). DBH is listed on the Dhaka Stock Exchange.
General IFC Inquiries - IFC Communications:
Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384
Financial Intermediary - DBH Finance PLC:
Nahid Ahmed - Head of Treasury
Phone: +8809612334455, Ext 142
Address: Landmark Building (14th Floor), 12-14 Gulshan North C/A, Gulshan 2, Dhaka-1212
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