IFC to lend Bank Asia $25 million 

Dhaka, Nov 29, 2020: IFC, a member of the World Bank Group, on Sunday announced to invest $25 million (nearly Tk 212 crore) in Bangladesh’s Bank Asia Limited.

With the money Bank Asia will provide critical working capital to help small and medium enterprises (SMEs) and corporate clients to continue their operations amid the Covid-19 pandemic, IFC said in a statement.

The move will also help preserve jobs in Bangladsh, said IFC.

“IFC has been a reliable partner and this fresh investment will allow us to extend critical working capital and trade finance in the form of forex liquidity to affected businesses,” said Arfan Ali, president and managing director of Bank Asia. 

He said: “We can now provide additional financial support to businesses, particularly to export and import-based SMEs and other corporate clients which ultimately impacts thousands of suppliers and employees who depend on these businesses”.

SMEs comprise over 90 percent of businesses in Bangladesh and employ over 20 percent of the adult population.

The financing package is part of IFC’s $8 billion global Covid-19 fast-track financing facility, aimed at helping companies stay afloat during the ongoing public health crisis. This investment comes under the Working Capital Solutions (WCS) programme of the Covid-19 response envelope, which provides $2 billion globally to emerging-market banks, enabling them to support struggling firms.
Bank Asia, an IFC client since 2014, is one of the leading private-sector commercial banks in Bangladesh.

“Small and medium enterprises are key to ensuring a resilient and inclusive recovery and therefore they need to be supported as part of any meaningful recovery strategy” said Rosy Khanna, IFC Regional Industry Director, Financial Institutions Group – Asia and Pacific.

"IFC is committed to supporting its clients in Bangladesh in this important endeavor through trade finance solutions,” she said.

IFC is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, IFC invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.