BRAC Bank gets largest int\\\'l syndicated loan

BRAC Bank has received USD 70 million (BDT 5.46 billion approx.) syndicated loan from the Dutch development bank FMO to expand its SME financing. The landmark transaction is the largest internationally syndicated loan for any bank in Bangladesh.  The syndicated facility with a tenor of 5 years will enable BRAC Bank to facilitate crucial trade finance support for SME and Corporate entrepreneurs. It will help create new employment and spur economic development in urban, suburban and rural areas. The loan has been provided by The Netherlands Development Finance Company FMO (who acted as Mandated Lead Arranger). In addition to USD 13.7 mln provided by FMO, participants include ACTIAM (USD 3.8 mln), OFID (USD 15 mln), OeB (USD 10 mln), BIO (USD 10 mln) and Responsibility (USD 2.5 mln). Proparco has committed to follow in 2015 with an additional USD 15 mln, which will bring the total to USD 70 million. “This debt facility provides BRAC Bank with the possibility to expand their business. It will increase the availability of funding for Bangladeshi small and medium enterprises, thereby supporting the creation of jobs and economic development of Bangladesh”, said Nanno Kleiterp, CEO of FMO. "This milestone deal is a testament to BRAC Bank's commitment to provide all kinds of financing solutions to entrepreneurs in small and medium business. Our partnership with FMO helps to provide crucial trade finance support to expand their business and elevate to next level. This is just a beginning to work in partnership with FMO to provide financing support to grassroots entrepreneurs which in turn helps create employment in Bangladesh,” said, Syed Mahbubur Rahman, Managing Director & CEO, BRAC Bank Limited. This loan facility will support BRAC Bank in providing its customers with sustainable financing, and thanks to its extensive branch network, the facility will particularly benefit small and medium entrepreneurs in rural and suburban parts of the country, where the supply of banking services is still limited. FMO also coordinated the Environmental and Social Action Plan as part of the loan agreement, according to a statement.