Our investment
In 2015, CDC invested $20 million into Frontier Bangladesh II, alongside the IFC and other European DFIs, including Germany’s DEG, the Netherlands’ FMO and Norway’s Norfund. Our investment provides much-needed growth capital to support the expansion of Bangladesh’s medium-sized businesses in key sectors.
Expected impact
Despite a lack of reliable power and infrastructure, the Bangladesh economy is growing steadily. Fuelled by an expanding middle-class with increased spending power, and low labour costs underpinning a strong export sector, in 2016 the IMF ranked the country as the second fastest growing major economy.
Our investment enables the fund manager to support the expansion of the country's high-growth medium-sized businesses, fuelling regional growth and creating direct and indirect jobs.
The fund invested in ecommerce business Zero Gravity Ventures, which supports the growth of both B2B and B2C ecommerce platforms.
It has also invested in telecomms infrastructure provider, Fiber@Home
Environmental and social aspects
The fund manager has a well-established approach to E&S management and we will continue to support and monitor its approach as the portfolio grows.
Key facts
- Status:
- Active
- Region
:
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- South Asia
- Sector
:
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.
- Infrastructure, Other consumer services
- Investment type
:
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Intermediated investment
- Fund manager:
- Frontier GP
- Start date
:
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- April 2015
- Amount
:
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
- $20m
- Domicile
:
This is the investee company’s place of incorporation; or a fund’s jurisdiction.
- Cayman Islands
Investments made by this fund
- Active
- Exited
| Investment name | Country | Region | Sector | Start date | Status |
|---|---|---|---|---|---|
| Zero Gravity Ventures Limited | Bangladesh | South Asia | Other consumer services | October 2017 | Active |
| Fiber @ Home Limited | Bangladesh | South Asia | Infrastructure | December 2017 | Active |
