BRAC BANK GREEN LOAN FOR MSMES

Promoteur – Intermédiaire Financier

BRAC BANK PLC

Lieu

• Bangladesh

Description

Green credit line to BRAC Bank to accelerate the transition to sustainable and circular production in the Bangladeshi private sector across the ready-made garment, textile and other export-focused sectors.

Additionality and Impact

EIB is providing a loan to BRAC Bank up to EUR 60 million with a tenor up to 12 years to finance green and circular projects of the private sector.

Bangladesh is a key trading partner for the EU and an important manufacturing hub for global supply chains. Garment and textile sectors are the main drivers of its economic growth and contribute to 85% of the exports. However, the private sector faces mounting demands from key trade partners to embrace circular economy practices and improve their manufacturing standards.

In response to this context, the EIB is providing a 100% Climate Action and Environmental Sustainability (CA&ES) loan to BRAC Bank as part of the EU's green push for sustainable and circular value chains. By partnering with BRAC Bank, the EIB facility will address the funding gap in the uptake of green and circular business models by local producers in resource-intensive sectors, such as garment and textile. In combination with the technical assistance provided in parallel under the Switch to Circular Economy Value Chains, the financing will stimulate market demand and support BRAC Bank's lending to circular economy. 

The investment will advance several SDGs and contribute to the EU's Circular Economy Action Plan.

Objectifs

EIB will provide a green credit line to BRAC Bank PLC (Offshore Banking Unit) to support the private sector transition towards circular and green practices. The EIB financing, along with technical assistance delivered in parallel under the SWITCH to Circular Economy Initiatives program, will help scale up investments in energy efficiency, green transportation, clean energy and circularity in the private sector.

Secteur(s)

• Lignes de crédit - Lignes de crédit

Montant BEI envisagé (montant approximatif)

EUR 60 million

Coût total (montant approximatif)

not applicable

Aspects environnementaux

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Passation des marchés

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Statut

Signé - 30/12/2025