BRAC Bank secures €60m EIB facility for green financing

BRAC Bank has secured a €60 million long-term financing facility from the European Investment Bank, the financing arm of the European Union, to expand green financing for businesses in Bangladesh.

The bank said the facility marks the longest-tenor funding ever extended by a development finance institution to a commercial bank in Bangladesh.

Arranged through BRAC Bank's Offshore Banking Unit, the 12-year facility will help businesses accelerate sustainable investments and strengthen Bangladesh's transition towards a greener economy.

The financing will support businesses, particularly in the readymade garment and textile sectors, to invest in circular economy initiatives, renewable energy, energy efficiency and sustainable waste management.

As one of Bangladesh's largest export industries, the readymade garment and textile sector is expected to benefit from increased access to long-term financing for cleaner and more resource-efficient 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 aimed at accelerating 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 critical 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.

The transaction was arranged by Inval Capital, an India-based advisory firm.

European Investment Bank Vice-President Nicola Beer 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, said the partnership with the European Investment Bank marks another milestone in expanding access to long-term green finance.

"BRAC Bank has long partnered with the entrepreneurs and businesses driving Bangladesh's economic growth. Our partnership with the EIB marks another significant milestone in expanding access to long-term green finance," he said.

"The facility will help businesses modernise operations, improve resource efficiency and meet evolving global sustainability standards, strengthening Bangladesh's competitiveness while supporting a more resilient and sustainable economy," he added.