€50m french loan for renewable energy, women entrepreneurs
The loan has a maturity period of 15 years with a grace period of three years
The government recently signed a €50 million (Tk496.92 crore) Credit Facility Agreement (CFA) agreement with Agence Française de Développement (AFD) to be administered through the Bangladesh Infrastructure Finance Fund Limited (BIFFL), to finance energy efficiency, renewable energy, and women entrepreneurship projects.
The loan, with a maturity period of 15 years and a grace period of three years, has an interest rate of Euribor six months+35 bp, according to a Monday press release.
Economic Relations Division Secretary Fatima Yasmin and Benoit Chassatte, AFD Country Director, Bangladesh, signed the agreement on behalf of their respective organisations on 12 August.
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According to the press statement, the fund will contribute to the economic transition of Bangladesh towards a greener economy.
The credit line will be provided by the Bangladesh government to the public non-banking financial institution BIFFL, to finance investments in the fields of energy efficiency, the production of renewable energies, mainly in rural areas, and women's entrepreneurship.
AFD, the French government arm that deals with overseas aid, has been operating in Bangladesh since 2012. It supports development projects for urban development and infrastructure, power & green energy, as well as corporate and social responsibility programs.
