MTB gets $20m term loan from Norfund

Norfund, an active strategic minority investor wholly owned and funded by the Norwegian government, will provide a concessional loan of $20 million to Mutual Trust Bank for socio-economic development of Bangladesh.

The Norwegian Investment Fund for Developing Countries or Norfund has recently signed the term loan deal with the Bangladeshi bank at a ceremony at Norfund's head office in Oslo, Norway.

The fund will be used mostly for the development of the small and medium enterprises sector and women entrepreneurs, said Anis A Khan, managing director of MTB.

"The deal is already final and we will take the fund gradually after selecting the clients in the SME sector."

The financial programme will primarily continue for six years, Khan said. Norfund is interested to extend their financing facilities for innovative financial solutions in Bangladesh, he said. The fund has already invested in a few other banks in the country, Khan added. Norfund is a private equity company established by the Norwegian Storting (supreme legislature of Norway) in 1997 and owned by the Norwegian Ministry of Foreign Affairs.

The fund receives its investment capital from the state budget. Norfund aims to invest in countries where they feel they can have the greatest impact.

Norfund's priority sectors are: clean energy, financial institutions and food and agribusiness. It also supports small and medium sized companies in developing countries.

Kristin Clemet, chair of Norfund board, addressed the partnership deal signing ceremony when Peter Molthe, senior adviser; Erik Sandersen, executive vice president, and Marianne Halvorsen, senior investment manager of the fund, were present.

Khan along with Ehethesham Rahman, head of structured finance, represented MTB at the programme.