Staff Reporter, Dhaka : Honouring its commitment to 3P Philosophy of People, Planet and Prosperity and aiming to contribute to the country’s SDGs by supporting Green Finance Projects, BRAC bank has signed an agreement with Japan International Cooperation Agency (JICA) and Citibank N.A for long-term loan facility totaling USD 100 million.
JICA is providing USD 90 million for a term of 8 years and Citi N.A. is providing USD 10 million for a term of 2 years.
This agreement is the first private sector financing by JICA to any financial institution in Bangladesh, representing a significant milestone in our journey towards achieving Sustainable Development Goals. BRAC Bank Ltd. is at the forefront in partnering with Development Financial Institutions in channeling foreign financing towards sustainable causes.
The proceeds of the JICA Facilities shall be to support the bank for onward lending in Green Finance segments under Sustainable Finance Policy for Banks and Financial Institutions with particular focus in Renewable Energy, Energy & Resource Efficiency, Efficient Waste Management. The facility provided by Citibank N.A. can be extended to any segments as per country regulations.
During challenging global market scenario, this substantial FX support from JICA and Citibank N.A. will help the bank to manage overall FX position whilst mobilizing finance in sustainable development avenues in the fields of green financing.
“The energy consumption in Bangladesh has been increasing enormously as the economy grows fast. To catch up the energy demand, the Government of Bangladesh has adopted a new policy for green finance to encourage, among others, renewable energy and energy efficiency. Also, it is a key to expand liquid waste management in particular to cope with rapid urbanization in the country. It is great honour for JICA to be of any assistance for tackling with these issues through loan assistance to BRAC Bank, which is strongly committed to scale up their green finance.” says Mikio Hataeda, Vice President of JICA.
Selim R. F. Hussain, Managing Director and CEO of BRAC Bank, said: “The bank’s board, especially its founding chairman Sir Fazle Hasan Abed envisioned bringing the unbanked “missing middle” under its inclusive banking strategy which is the key to BRAC Bank’s success. BRAC Bank is committed towards providing long term financing to Green Financing Projects with the ultimate view to contribute to 3Ps and ultimately enable to reach our SDGs.”
Founded in 2001, BRAC Bank prioritizes on mobilizing finance towards sustainable development and excels in value based banking to ensure environmental conservation & social protection while promoting practical solutions for green economic growth. The USD 100 million Green Finance Facility is a landmark long-tenor agreement of BRAC Bank with JICA and Citibank N.A.
BRAC Bank is the largest collateral-free SME financier in Bangladesh. With 200 branches, 456 SME Unit Offices, 1,000 Agent Banking Outlets and 8,369 employees throughout the country, the bank caters to around 1.3 million customers, many of whom are women living in rural areas.
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