Bangladesh to receive $100 million climate boost ahead of LDC graduation

Bangladesh is set to attract a significant international investment aimed at fostering inclusive and climate-resilient economic growth, as Impact Investment Exchange (IIX) has announced plans to allocate up to $100 million to the country under its $1 billion Orange Climate Fund.

The announcement was made by Professor Durreen Shahnaz, founder and chief executive officer of Impact Investment Exchange (IIX) during the "Orange Economy Summit 2026: Dhaka" held at the Dhaka Stock Exchange (DSE) today (16 June).

The summit was jointly organised by the Dhaka Stock Exchange (DSE), Impact Investment Exchange (IIX), and the Policy Research Institute of Bangladesh (PRI). Bangladesh Bank Deputy Governor Dr. Md. Habibur Rahman attended the event as the chief guest.

Impact Investment Exchange is a Singapore-based global organisation that bridges financial returns with positive social and environmental impact. The organisation connects global investors with underserved and marginalised communities, with a particular focus on women's empowerment, climate action, and sustainable development. It is a pioneer in impact investing, building inclusive and climate-smart financial systems across emerging markets.  

Speaking at the summit, Professor Shahnaz said Bangladesh must develop a strong and inclusive financial market to sustain long-term economic growth as it prepares for graduation from the Least Developed Country (LDC) category.

She highlighted the country's vast investment opportunities in the ready-made garment, agriculture, energy transition, and financial services sectors, stressing that a deeper and more diversified capital market is essential to unlock this potential.

Professor Shahnaz noted that the global "Orange Movement" aims to build inclusive capital markets worldwide and mobilise $10 billion by 2030, adding that IIX has already invested more than $18 million in Bangladesh over the past decade and described the country's first Orange Bond issuance as a significant milestone.

Notably, in March 2026, the Bangladesh Securities and Exchange Commission (BSEC) approved the country's first Orange Bond worth Tk158.5 crore.  The bond was issued through Sajida Foundation to support women's empowerment and promote gender equality.

An Orange Bond is a specialised investment instrument designed to raise capital for initiatives that advance the economic empowerment of women and girls, support gender-diverse and marginalised communities, and address climate change challenges. The instrument combines financial returns with measurable social and environmental impact, making it a key tool for inclusive and sustainable development.

Addressing the summit as Dr. Habibur Rahman said innovative financial instruments such as Orange Bonds can play a crucial role in promoting women's economic empowerment, financial inclusion, and climate resilience.

He reaffirmed Bangladesh Bank's full support for attracting $100 million in Orange investments into Bangladesh by 2030, emphasising the importance of building a diversified and sustainable financial market in the post-LDC era.

A keynote paper titled "Building Bangladesh's Orange Capital Ecosystem" was presented by Dr. Ashikur Rahman, chief economist of PRI.

He said Bangladesh must address major challenges including job creation, productive investment, and climate adaptation to achieve its ambition of becoming a $1 trillion economy.

According to him, Orange Capital could serve as an innovative financing mechanism amid existing limitations in the banking and capital market sectors. He identified ready-made garments, agro-processing, renewable energy, and financial services as sectors with strong potential for Orange Capital investments.

DSE Managing Director Nuzhat Anwar said sustainable development requires not only economic growth but also social inclusion and climate resilience.

She also expressed hope that greater awareness of the Orange Economy and related financial instruments would create new investment opportunities in Bangladesh's capital market.

The summit brought together policymakers, regulators, financial institutions, development partners, corporate leaders, and local and international experts. Discussions focused on expanding inclusive finance, strengthening Bangladesh's Orange Capital ecosystem, and leveraging innovative financial instruments to support sustainable economic growth.