Unlocking new sources of climate finance is essential for Bangladesh as it faces growing climate risks, United Nations Development Programme Resident Representative Bangladesh Stefan Liller said.
The United Nations Development Programme and City Bank PLC signed a Memorandum of Understanding to accelerate climate finance through the country’s emerging thematic bond market, the organisation said in a statement.
The agreement was signed at the bank’s head office by United Nations Development Programme Resident Representative Bangladesh Stefan Liller and City Bank Managing Director and CEO Mashrur Arefin.
The partnership aims to mobilise private sector investment for climate-resilient development, focusing on green investments.
Under the agreement, the United Nations Development Programme will provide technical assistance to support City Bank in issuing a green bond, the first of its kind by a commercial bank in Bangladesh.
The proposed bond will finance eligible green projects, including climate adaptation and mitigation initiatives.
The initiative is significant given Bangladesh’s high exposure to climate change and the global shortfall in adaptation financing.
The collaboration is expected to help connect sustainable finance with local investment needs.
“Our partnership with UNDP brings the technical strength and global reach needed to unlock new financing pathways and accelerate sustainable growth,” said City Bank Managing Director and CEO Mashrur Arefin.
To align with international standards, the United Nations Development Programme will also provide guidance on green bond frameworks, impact measurement, reporting and governance of proceeds.
These measures are expected to enhance transparency and credibility, helping attract both domestic and international investors.
