This investment was made when British International Investment was named CDC Group.
We have now exited this investment. This is what we achieved.
Achieved impact
BII invested in Grameenphone Ltd due to its strong potential to drive telecommunications impact in Bangladesh. At the time of investment, the company had a strong financial performance and had proven to create jobs, generate fiscal revenue for Bangladesh, and uphold ESG standards in its operations. The company was the largest taxpayer in Bangladesh at that time.
The core of BII’s impact thesis was to support Grameenphone’s rollout of its 3G network across Bangladesh, increasing access to and speed of data services to promote digital inclusion and support the delivery of essential services.
At the time of our exit, Grameenphone had demonstrated a significant impact on telecommunications in Bangladesh. The establishment of the 3G network significantly expanded access to data services, including in remote parts of the country. This includes the widely celebrated Village Phone initiative that sought to provide easy access to telephone services all over rural Bangladesh, bridging the information gap between rural and urban areas, and providing income-generating technology.
Since our initial partnership with Grameenphone, its subscriber base has expanded significantly, rising from 51.5 million in 2014 to 79 million mobile users, including 46.3 million internet data users at the time of full exit in 2020. This demonstrates significant growth and impact on the country’s connectivity, in which our loan played a part.
Bangladesh’s mobile industry has scaled quickly since 2012. However, the quality and affordability of services are poor compared to its peers. Millions of people have yet to access fast 3G and 4G connectivity, meaning Bangladesh has one of the lowest internet penetration levels in the region. Affordability represents a major barrier to the uptake of mobile services, with high taxation and fees applied to the mobile sector affecting the cost of mobile ownership. Further investment in telecommunication will be in necessary to shrink the connectivity gap in the country.
Expected impact
In 2013, BII (then CDC Group) provided a $25 million loan to Grameenphone. The loan was made as part of a lending group with the International Finance Corporation, other DFIs and Standard Chartered Bank. The total loan facility is $345 million.
The funding intended to help modernise the Grameenphone network and increase its coverage in rural areas, acting as a driver for wider economic growth.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
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Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2024
- Project number
:
An identifier number shared by investments in the same project.
- D194
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Exited
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Bangladesh
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Communications & IT services
- Investment type :
- Debt
- Start date :
- May 2013
- End date :
- April 2020
- Amount :
- $25m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- Bangladesh
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
