BRAC Bank has secured a landmark €60 million long-term financing facility from the European Investment Bank (EIB), marking the longest-tenor funding ever extended by a development finance institution to a commercial bank in Bangladesh.
Arranged through BRAC Bank's Offshore Banking Unit, the 12-year facility will expand access to long-term green financing, enabling businesses to accelerate sustainable investments and strengthen Bangladesh's transition towards a greener economy, according to a press release.
The financing will support businesses, particularly in the ready-made garment and textile sectors, to invest in circular economy initiatives, renewable energy, energy efficiency and sustainable waste management. As one of Bangladesh's largest export industries, the sector stands to benefit from increased access to long-term financing for cleaner, more resource-efficient production.
Of the total facility, €40 million will support more than 2,500 small enterprises through investments in cleaner production, renewable energy, resource efficiency, waste reduction and modern equipment, with the full amount contributing to climate action and environmental sustainability. Eligible investments include rooftop solar photovoltaic systems, green buildings, improved waste management, electric two- and three-wheelers, clean cooking technologies, rainwater harvesting and household water filtration solutions.
The remaining €20 million framework loan will finance larger-scale projects that accelerate sustainable and circular production across Bangladesh's export-oriented industries, including the ready-made garment and textile sectors.
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