ADB to lend US$100m as addl. financing for BIFFL

Asian Development Bank (ADB) signed an agreement on Thursday with the government to lend US$100 million to Bangladesh Infrastructure Finance Fund Limited (BIFFL) as additional financing, an official statement said in Dhaka, reports BSS.

The Economic Relations Division (ERD) statement said the agreement was signed for "Strengthening Bangladesh Infrastructure Finance Fund Limited Project-Additional Financing".

ERD Secretary Md. Shahriar Kader Siddiky inked the deal with ADB Country Director in Dhaka Hoe Yun Jeong at a ceremony joined by senior officials of both the offices.

BIFFL is to implement the project under ERD oversight to be completed by 2029 aiming to catalyze commercial financing for public-private partnership (PPP) projects in infrastructure development sector. BIFFL Chief Executive Officer SM Anisuzzaman and Hoe Yun Jeong signed a separate project agreement in this regard.

According to the statement ADB's Ordinary Capital Resources (OCR-Regular) loan is repayable in 25 years with a 5-year grace period with its interest rate being SOFR+0.50%+Maturity Premium 0.10% and Commitment Charge of 0.15%.

Bangladesh became an ADB member in 1973 since when it operates as one its largest multilateral development partner till date the amount of its financing stood above $31897.47 million as loan and $571.2 million as grant.

ADB's development assistance mainly focuses on power, energy, local government, transport, education, agriculture, health, water resources, governance and financial sectors of Bangladesh.