Pubali Bank to get $50m loan from British lender
Pubali Bank Ltd is going to get a fund of $50 million from the British International Investment (BII), the UK's development finance institution and impact investor, to lend to climate-related projects and boost climate mitigation activities across Bangladesh.
The green loan from BII will primarily be used for projects in the renewable energy, green buildings, textile and manufacturing sectors.
Pubali Bank will use the facility to extend climate finance loans to its corporate clients, enabling them to purchase key equipment required in climate projects and implement climate-related technological solutions.
A signing ceremony to this effect took place at the head office of the private commercial bank in Dhaka on Thursday. The package will support Pubali Bank in building technical expertise and best practices, strengthen data collection on climate financing and climate risk, and further increase the bank's ability to originate green projects and structure climate investments in line with international standards, said the bank in a press release.
The BII will also provide a technical assistance package, which will strengthen the private commercial lender's rapidly growing sustainable finance portfolio. This is BII's first climate-related investment in Bangladesh.
"This new UK capital, focused on climate action, will direct much-needed climate finance toward Bangladeshi corporates and contribute to reducing greenhouse gas emissions," said Robert Chatterton Dickson, British high commissioner to Bangladesh, in the press release.
"The UK, including BII, is committed to working with Bangladesh in expanding a trade and investment relationship that will benefit sustainable growth in both countries."
Mohammad Ali, acting managing director of Pubali Bank, said climate change has emerged as an economic shock in Bangladesh.
"We're seeing reduced agricultural yields, damaged infrastructure, and increased commodity cost. Through our existing portfolio of climate-related projects and pipelines, Pubali Bank understands the complex impact of climate change in the country."
"Our partnership with the BII will enable us to grow our climate finance offering and support a wider range of clients who are preserving the environment and strengthening the economy."
M Rehan Rashid, country director of the BII, said the landmark climate investment marks BII's commitment to playing a role in supporting economic and environmental transformation in Bangladesh.
"By supporting Pubali Bank in becoming a leading participant in climate financing, BII's capital will facilitate greater resilience and sustainability across communities, businesses and industries in Bangladesh."
Mohammad Ali and Rehan Rashid exchanged the signed documents of the deal.