BRAC Bank inks $100mn green finance deal with JICA, Citibank

BRAC bank has signed an agreement with Japan International Cooperation Agency (JICA) and Citibank NA for a long-term loan facility totalling $100 million.

The loan is part of BRAC Bank’s commitment to the “3P Philosophy- People, Planet and Prosperity” and aims to contribute to the country’s SDGs by supporting Green Finance Projects, said a press release.

JICA is providing $90 million for a term of eight years and Citi NA is providing $10 million for a term of two years.

This agreement is the first private sector financing by JICA to any financial institution in Bangladesh, representing a significant milestone in our journey towards achieving Sustainable Development Goals.

BRAC Bank is at the forefront of partnering with Development Financial Institutions in channelling foreign financing towards sustainable causes.

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 on renewable energy, energy & resource efficiency, and efficient waste management.

The facility provided by Citibank NA can be extended to any segment as per country regulations.

During the challenging global market scenario, this substantial FX support from JICA and Citibank N.A. will help the bank to manage overall FX position whilst mobilizing 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 urbanization in the country. 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.” Said Mikio Hataeda, vice president of JICA.

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.”