BRAC Bank enters $100m Green Finance Facility agreement with JICA, Citibank

JICA provided $90 million for a term of 8 years while Citibank NA delivered USD 10 million for a term of 2 years

Published : 12 Jan 2023, 03:39 PM
Updated : 12 Jan 2023, 03:39 PM

BRAC Bank has signed an agreement with Japan International Cooperation Agency and Citibank National Association for long-term loan facility totalling $100 million to support the Green Finance project and contribute to the Sustainable Development Goals.

The agreement marked the first private sector financing by JICA to any financial institution in Bangladesh marking a significant milestone to contribute to the United Nations SDGs, a statement read on Thursday.

BRAC Bank focused on its commitment to the 3P philosophy of people, planet and Prosperity, while JICA provided $90 million for a term of 8 years while Citibank NA delivered USD 10 million for a term of 2 years.

BRAC Bank is at the forefront in partnering with development financial institutions in channelling foreign financing towards sustainable causes, it added.

The proceeds of the JICA Facilities shall be to support the bank for lending in Green Finance segments under Sustainable Finance Policy for Banks and Financial Institutions with particular focus on renewable energy, energy & resource efficiency and efficient waste management.

The facility provided by Citibank NA can be extended to any segments as per country regulations.

Amid a challenging global market scenario, the foreign currency loan support from JICA and Citibank NA will help the bank to manage its overall foreign loan position while mobilising finance in sustainable development avenues in the fields of green financing, the statement read.

Vice President of JICA Mikio Hataeda was quoted as saying: “The energy consumption in Bangladesh has been increasing enormously as the economy grows fast. To catch up with the energy demands, Bangladesh has adopted a new policy for green finance to encourage renewable energy and energy efficiency among other areas.”

“Also, it is key to expand liquid waste management, to cope with rapid urbanisation in particular. It is a 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 scaling up their green finance,” he added.

Selim RF Hussain, managing director and CEO of BRAC Bank, said: "The bank's board, especially its founding chairman late Fazle Hasan Abed envisioned bringing the unbanked ‘missing middle’ under its inclusive banking strategy, which is the key to BRAC Bank's success.”

“The bank is committed to providing long-term financing to Green Financing Projects with the ultimate view to contribute to 3Ps and reaching our SDGs,” it added.

Founded in 2001, BRAC Bank prioritises on mobilising finance towards sustainable development and excels in value-based banking to ensure environmental conservation & social protection while promoting practical solutions for green economic growth, according to the statement.

The $100 million Green Finance Facility is a landmark long-tenor agreement of BRAC Bank with JICA and Citibank NA, it added.

Toufique Imrose Khalidi
Editor-in-Chief and Publisher