IFC to invest in Bangladesh, South Asian countries to produce vaccine

In the context of Covid-19, International Finance Corporation (IFC) will invest in the pharmaceutical industry, including vaccine production in Bangladesh and other South Asian countries.

IFC came up with the announcement today, a day after Dhaka and China signed an agreement to produce vaccines.

The investment will support medical facilities, vaccines and supplies, and to hard-hit micro, small, and medium enterprises (MSMEs) while also spurring investments in renewable energy, affordable housing, and distressed assets resolution, IFC said in a statement.

"In a bid to protect the most vulnerable people and help companies maintain operations and jobs, IFC's focused and sustained investments in South Asia continued to have strong impact in the fiscal year 2021," it said.

IFC said amid a difficult year with massive and ongoing social and economic disruptions caused by COVID-19, IFC committed over $3.8 billion, including mobilization and short-term finance, in South Asia as of June 2021—resulting in a record investment volume of over $14.9 billion in the last five years in the region, towards a green, inclusive, and resilient recovery.

In India, IFC's largest client country globally, total commitments at the end of June stood at $1.7 billion representing an increase of over 51 per cent from last year. Likewise, in Bangladesh, IFC made total commitments of $791 million, an increase of almost 33 per cent from last year. 

IFC has committed $590 million in COVID-response deals in South Asia—with additional deals worth over $100 million in the pipeline.

IFC's fast-track financial support has helped clients across sectors at a time when the economic fallouts of the pandemic have severely impacted market sentiment.