Pubali Bank Ltd is to secure a $50 million fund from British International Investment (BII), the UK’s development finance institution and impact investor, to lend to climate-related projects and boost business development. climate change mitigation in Bangladesh.
BII’s green loan will primarily be used for projects in the renewable energy, green building, textile and manufacturing sectors.
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Pubali Bank will use the facility to provide climate finance loans to its corporate clients, enabling them to purchase key equipment needed for climate projects and implement climate-related technology solutions.
A signing ceremony to that effect was held Thursday at the private commercial bank’s headquarters in Dhaka. The package will help Pubali Bank develop its technical expertise and best practices, strengthen data collection on climate finance and climate risk, and further increase the bank’s ability to launch green projects and structure climate investments. in accordance with international standards, the bank said in a press release. Release.
The BII will also provide a technical assistance program, which will strengthen the private commercial lender’s rapidly growing sustainable financing 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 to Bangladeshi businesses and help reduce greenhouse gas emissions,” Robert Chatterton Dickson, UK High Commissioner to Bangladesh, said in a statement. the press release.
“The UK, including the BII, is committed to working with Bangladesh to develop 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 become an economic shock in Bangladesh.
“We are seeing reduced agricultural yields, damaged infrastructure and increased cost of commodities. 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 allow us to expand our climate finance offering and support a wider range of clients who are preserving the environment and strengthening the economy.”
Mr. Rehan Rashid, BII Country Director, said this landmark climate investment marks the BII’s commitment to play a role in supporting economic and environmental transformation in Bangladesh.
“By helping Pubali Bank become a leading player in climate finance, BII’s capital will facilitate greater resilience and sustainability in communities, businesses and industries in Bangladesh.
Mohammad Ali and Rehan Rashid exchanged the signed documents of the agreement.