BRAC Bank has signed an agreement with Japan International Cooperation Agency (JICA) and Citibank N.A. for long-term loan facility totalling $100 million to support the Green Finance projects. Officials and representatives of the three organisations pose at the signing ceremony held recently. BRAC bank has signed an agreement with Japan International Cooperation Agency (JICA) and Citibank N.A. for a long-term loan facility totalling USD 100 million, aiming to contribute to the country's SDGs by supporting green finance projects.
JICA is providing $90 million for a term of eight years and Citi N.A. is providing $10 million for a term of two years, says a press release.
This agreement is the first private sector financing by JICA to any financial institution in Bangladesh, representing a significant milestone in the journey towards achieving Sustainable Development Goals (SDGs).
The proceeds of the JICA facilities shall be to support the bank for onward lending in green finance segments under Sustainable Finance Policy for Banks and Financial Institutions with particular focus in renewable energy, energy & resource efficiency and efficient waste management. The facility provided by Citibank N.A. can be extended to any segments as per country regulations.
During challenging global market scenario, this substantial support from JICA and Citibank N.A. will help the bank to manage overall foreign exchange position while mobilising finance in sustainable development avenues in the fields of green financing.
"The energy consumption in Bangladesh has been increasing enormously as the economy grows fast. To catch up the energy demand, the Government of Bangladesh has adopted a new policy for green finance to encourage, among others, renewable energy and energy efficiency. Also, it is a key to expand liquid waste management in particular to cope with rapid urbanisation in the country," says Mikio Hataeda, Vice President of JICA.
"It is 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 scale 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 Sir Fazle Hasan Abed envisioned bringing the unbanked "missing middle" under its inclusive banking strategy which is the key to BRAC Bank's success. BRAC Bank is committed towards providing long term financing to green financing projects with the ultimate view to contribute to 3Ps and ultimately enable to reach our SDGs."
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