BRAC Bank to receive $50m loan from British International Investment for supporting SMEs

The British International Investment (BII), the UK's development finance institution (DFI) and impact investor, committed a loan of $50 million to BRAC Bank, a leading SME bank in Bangladesh.

The loan will provide vital foreign currency funding support for its offshore banking clients, the bank said in a press statement today (14 May).

A formal signing ceremony to this end was held at BRAC Bank headquarters in Dhaka yesterday (13 May).

Sarah Cooke, British High Commissioner to Bangladesh; Duncan Overfield, deputy development director & head of Prosperity and Economic Growth, British High Commission Dhaka; Shahnur Shikder; Private Sector Development adviser, British High Commission Dhaka; Rehan Rashid, country director, Bangladesh, British International Investment, were present on the occasion.

From BRAC Bank, Meheriar M Hasan, Chairperson, and Selim RF Hussain, managing director & CEO, were present.

According to the press statement, BRAC Bank has served 1.5 million MSMEs since its establishment in 2001 and expects to grow its loan book. It is sponsored by BRAC NGO, a leading non-government organisation with a mandate for impact investment and financial inclusion.

Speaking at the agreement signing ceremony, Sarah Cooke, British High Commissioner to Bangladesh, said, "I am delighted that the British International Investment (BII) is backing BRAC Bank to fund micro, small and medium enterprises and women-led businesses. This will enable small businesses and female entrepreneurs in Bangladesh to take up more economic opportunities and create more jobs. This investment reinforces the UK's commitment to support inclusive and sustainable development in Bangladesh and is a great demonstration of the UK's modern economic partnership with Bangladesh."

Rehan Rashid, country director, Bangladesh at BII said, "We are proud to work with BRAC Bank again with a bigger mandate to support small businesses and women entrepreneurs in Bangladesh. Since we made our first investment in BRAC Bank in 2019, we have been looking to increase lending for inclusion in Bangladesh and with trusted partners like BRAC Bank, we can reach more people who need our support the most and are truly instrumental in driving the country's progress and prosperity."

BRAC Bank MD Selim RF Hussain, "As an MSME-focused bank, ensuring easy access to credit to grassroots entrepreneurs and women business owners is a priority for BRAC Bank. BII's commitment will pursue BRAC Bank to expand credit facilities to MSMEs and women-led businesses enabling them to solidify businesses.  It will help micro-entrepreneurs expand their product basket, penetrate new marketplaces and create jobs invigorating the rural economy. Our strong partnership with the UK's development finance institution aims to create opportunities for unserved and underserved businesses. The injection of $50 million from BII will also ameliorate the foreign exchange position of Bangladesh."

This investment supports UN SDG 5 on Gender Equality, SDG 8 on Decent Work and Economic Growth, as well as SDG 9 on Industry, Innovation and Infrastructure.