Business Report :
BRAC Bank signed an agreement with British International Investment (BII), a development finance institution (DFI) and impact investor of the United Kingdom, under which the latter will provide a loan of $50 million to the former.
A signing ceremony was held at the bank’s head office in Dhaka on May 13, BRAC Bank said in a press release.
By taking this loan, BRAC Bank will support 3,500 micro, small and medium enterprises (MSMEs) and women-led businesses in Bangladesh via its extensive network.
Sarah Cooke, British high commissioner to Bangladesh, said: “This will enable small businesses and female entrepreneurs in Bangladesh to take up more economic opportunities and create more jobs.”
“This investment reinforces the UK’s commitment to support inclusive and sustainable development in Bangladesh and is a great demonstration of the UK’s modern economic partnership with Bangladesh,” she added.
Rehan Rashid, country director of Bangladesh at BII, said: “We are proud to work with BRAC Bank again with a bigger mandate to support small businesses and women entrepreneurs in Bangladesh.”
“Since we made our first investment in BRAC Bank in 2019, we have been looking to increase lending for inclusion in Bangladesh and with trusted partners like BRAC Bank, we can reach more people that need our support the most and are truly instrumental in driving the country’s progress and prosperity,” he added.
Selim RF Hussain, managing director and CEO of BRAC Bank, said: “It will help micro-entrepreneurs expand their product basket, penetrate new markets and create jobs invigorating the rural economy.”
“Our strong partnership with the UK’s development finance institution aims to create opportunities for the unserved and underserved businesses.”
“The injection of $50 million from BII will also ameliorate foreign exchange position of Bangladesh,” he added.
The loan will provide vital foreign currency funding support for its offshore banking clients, the bank said in a press release.
This agreement supports United Nations sustainable development goal five on gender equality, sustainable development goal eight on decent work and economic growth, as well as sustainable development goal nine on industry, innovation and infrastructure.
Among others, Duncan Overfield, deputy development director and head prosperity and economic growth at the British High Commission in Dhaka, and Shahnur Shikder, private sector development adviser, and Meheriar M Hasan, chairperson of BRAC Bank, were also present.