Brac Bank gets maiden private sector financing from Jica

Japan International Cooperation Agency (Jica) on Thursday confirmed its first ever private sector financing in Bangladesh to Brac Bank.

To honour its commitment to 3P Philosophy — People, Planet and Prosperity — and aiming, Brac Bank signed an agreement with Jica and another with Citibank NA for long-term loan facility totalling $100 million.

Jica is providing $90 million for a term of 8 years and Citibank NA $10 million for a term of two years.

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 a particular focus in renewable energy, energy and resource efficiency, and efficient waste management.

On the other hand, the facility provided by Citibank NA can be extended to any segment as per country regulations.

“To catch up with the energy demand, the Bangladesh government 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,” said Mikio Hataeda, vice president of Jica.

Selim RF 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. We are 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.”

They also hoped that during a challenging global market scenario, this substantial FX support from Jica and Citibank NA will help the bank to manage the overall FX position whilst mobilizing finance in sustainable development avenues in the fields of green financing.

Founded in 2001, Brac Bank prioritizes on mobilizing finance towards sustainable development and excels in value based banking to ensure environmental conservation and social protection while promoting practical solutions for green economic growth.

However, 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.