Tk1.4b Citibank term loan for Brac

Brac, a leading non-governmental organisation, has entered into a term financing of Tk 1.40 billion with Citibank NA, Bangladesh with the support of Overseas Private Investment Corporation (OPIC) of the USA
This is the first time OPIC, an agency of the United States Government, has extended its support to the cause of micro-finance in Bangladesh.
The Tk 1.40 billion in local currency facility will be utilised to finance the expansion of Brac's micro-finance programme, agriculture, rural development and small and medium enterprises lending portfolios.
Shams Zaman, head of Structured Finance of Citibank NA, Bangladesh, said this is for the first time OPIC has come forward with credit enhancement for micro-financing in Bangladesh.
“Brac has got the loan with competitive terms for a period of five years,” he said.
“With this financing we will support the Brac's activities and contribute to reviving the rural economy, especially after two consecutive floods and devastating cyclone in the southern region of Bangladesh,” he added.
Brac is expected to start disbursing the loan shortly for its development-oriented activities.
Brac has earned an international reputation as an innovator in micro-finance, exporting micro-finance best practices globally.