UK's development finance institution and impact investor CDC Group ("CDC") has provided a 30 million US dollar trade finance loan to Prime Bank Limited.
This liquidity will enable Prime Bank to extend more foreign currency trade credit at longer tenors to local businesses, and the facility is expected to generate up to 60 million USD of additional trade every year across key economic sectors such as manufacturing, ready-made garments, food and agriculture, said a Prime Bank press release on Wednesday.
In this regard, Country Director for Bangladesh at CDC Group M Rehan Rashid said, "CDC's partnership with Prime Bank, demonstrates our joint goal of increasing financial inclusion and providing agile counter-cyclical funding in response to the funding gap in the market. We are happy to be backing a Bangladeshi financial institution that will help accelerate capital support to local communities, boost businesses and economic opportunities."
Managing Director and CEO of Prime Bank Hassan O Rashid said, " This collaboration shall enable Prime Bank to address the need of Corporate and SME clients in the post-Covid business environment. Furthermore, the alliance shall provide liquidity support to our international trade business and help us to migrate some of the best international practices to strengthen our corporate governance."
The British High Commissioner to Bangladesh Robert Chatterton Dickson said, "This new trade finance loan by the UK's bilateral investment arm, CDC, will act as a stimulus to the growth of Bangladesh's GDP by providing support to key economic sectors. It underlines the UK's commitment to accelerating economic recovery in Bangladesh by improving private sector access to finance. I wish CDC and Prime Bank a successful partnership."