BRAC Bank secures €60m EIB facility for green financing
BRAC Bank PLC has secured a €60 million long-term financing facility from the European Investment Bank to expand green financing for businesses and support Bangladesh's transition towards a more sustainable economy.
The 12-year facility, arranged through BRAC Bank's Offshore Banking Unit, will provide long-term financing for businesses investing in cleaner production, renewable energy, energy efficiency, circular economy initiatives and sustainable waste management.
The bank said the facility marks the longest-tenor funding extended by a development finance institution to a commercial bank in Bangladesh.
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The financing will support businesses, particularly in the readymade garment and textile sectors, to invest in more resource-efficient and sustainable 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. The full amount will contribute to climate action and environmental sustainability, the bank said.
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 readymade garment and textile sectors.
Bangladesh is the world's second-largest apparel supplier to the European Union, with the sector contributing around 85% of the country's exports, according to the press release.
As European markets increasingly demand more sustainable and transparent supply chains, access to long-term green finance has become important for local manufacturers to remain globally competitive.
The facility is expected to help businesses meet evolving sustainability standards while strengthening trade between Bangladesh and the European Union.
Gelsomina Vigliotti, Vice-President of the European Investment Bank, said, "This agreement shows how European finance can support greener, more resilient and more competitive supply chains. By partnering with BRAC Bank, a globally recognised institution for financial inclusion, we are helping Bangladeshi companies invest in cleaner production, circular solutions and energy efficiency, while supporting the EU's wider commitment to sustainable trade and climate action."
Tareq Refat Ullah Khan, Managing Director and Chief Executive Officer of BRAC Bank PLC, said the partnership marks an important step in accelerating green and circular investments across the country's industrial value chains.
"The financing will help businesses modernise operations, improve resource efficiency and meet evolving global sustainability standards, strengthening Bangladesh's competitiveness in international markets while supporting a more resilient and sustainable economy," he said.
