Proparco deepens private sector engagement in Bangladesh

Proparco, the private sector arm of the French government's development agency AFD Group, is stepping up its engagement in Bangladesh, with investments and technical assistance worth over US$162 million channelled into private enterprises over the past 12 years.
"We want to do much more in Bangladesh," said Proparco Deputy Executive Officer Djalal Khimdjee in an interview with The Financial Express after a recent meeting at the organisation's headquarters in Paris.
He noted that Bangladesh's strong economic growth and demographic potential make it a key focus area as Proparco scales up operations across the Indo-Pacific region.
Proparco began operations in Bangladesh in 2013, a year after its parent agency, Agence Française de Développement (AFD), started funding water treatment projects in the country.
Since then, Proparco has provided financing across multiple sectors, including small and medium enterprises (SMEs), green initiatives, and the ready-made garment (RMG) industry.
During the visit, officials shared that the organisation has extended credit lines worth $27.5 million to SMEs, $36 million to the RMG sector, and $12.5 million in green finance.
It also participated in a $30 million International Finance Corporation (IFC)-led syndication to provide Grameenphone with funding for its telecom tower infrastructure.
Khimdjee said Proparco's operations align with the French government's emphasis on strong environmental, social, and governance (ESG) standards.
While India, Vietnam and Cambodia currently rank high among Proparco's priorities, the Dhaka office's expanding portfolio signals growing attention towards Bangladesh.
Proparco offers a range of financial products including senior and subordinated loans, bond subscriptions for green projects, and financing support for women entrepreneurs - all at market-based conditions.
These offerings complement local commercial banking operations, with Brac Bank, Eastern Bank, United Commercial Bank and One Bank among its current partners.
According to Khimdjee, loan structures vary by geography, sector, and borrower risk profile.
Proparco's RMG-sector support includes $14 million to Viyellatex Group for a green spinning factory, $13.8 million for Ananta Huaxiang's textile expansion, and $27.5 million to Q Collection for capacity expansion.
Viyellatex (VSL), which specialises in high-quality, durable yarn production, received a US$14 million loan through HSBC to acquire new equipment and improve environmental and social compliance.
In 2015, Eastern Bank secured a $20 million credit line to finance new production units and remediation work across six RMG clients.
A $27.5 million bilateral loan to Q Collection funded green capital expenditures such as rainwater harvesting systems, improved air and thermal insulation, and the replacement of inefficient gas engines, while also meeting the company's working capital needs.

smunima@yahoo.com