Due Diligence of an increase of KfW’s Equity Investment in First Microfinance Bank

The objective of the due diligence was to gain a thorough understanding of the business situation at First Microfinance Bank (FMFB) by evaluating its potential profitability.

BFC accomplished the following during the assignment:

  • provided a short overview of the macroeconomic situation in Tajikistan, with a special focus on financial market potential
  • analyzed the financial and operational (especially management and governance) environment in FMFB
  • evaluated the business strategy of FMFB with a focus on products and operations
  • assessed FMFB’s position in the microfinance market and its profitability outlook
  • projected financial outcomes of the possible investment
  • developed recommendations for the potential investor