CDC Group, the UK government's development finance institution, has announced to provide $30 million in loan to the Brac Bank Limited.
An agreement has been signed to this effect where BRAC Bank Managing Director and CEO Selim RF Hussain and CDC Group CEO Nick O'Donohoe exchanged documents of the agreement in Dhaka on October 1 in the presence of senior officials from both the organisations.
The CDC's capital scheme intends to help BRAC Bank expand its lending programme to export-oriented and other businesses to accelerate their growth, advance employment and positively contribute to Bangladesh's economy, according to a press release from Brac Bank.
Selim RF Hussain said, "CDC's commitment will help Brac Bank expand credit facilities to export-oriented Bangladeshi businesses, allowing them to further explore international markets."
"As Bangladesh is on the course to be a middle-income country, its businesses must explore international market to boost GDP. We are proud to partner with this renowned UK development finance institution," he added.
CDC Managing Director and Head of Asia Srini Nagarajan said, "The CDC has been investing in Bangladesh since the early eighties and over the last 10 years have invested more than $205 million in Bangladesh."
"We are now committing our capital to BRAC Bank with a view to promoting financial inclusion, increasing lending to SMEs and ensuring economic empowerment of women. All the three areas are key impact strategies of CDC," he also said.
The Brac Bank is a leading local bank, managed by a strong management team; they look forward to working with them to help accelerate their capabilities in Bangladesh."
The CDC has invested worth around $2 billion in the wider region of South Asia for over 30 years and has over 300 investee partners. As part of its commitment to invest a further $1.7 billion in South Asia during 2018-2021, the CDC offers flexible investment solutions including equity, corporate debt, project finance and fund investments.