Bangladesh has secured a $400 million loan from the Asian Infrastructure Investment Bank (AIIB) to bolster its climate resilience and inclusive development efforts, reports BSS.
The funding, signed on Sunday under the “Climate Resilient Inclusive Development Programme-Subprogram 2,” will support the government’s initiatives to combat climate change impacts while promoting sustainable growth.
The agreement was formalized by Mirana Mahrukh, Additional Secretary of the Economic Relations Division, and AIIB’s Rajat Misra, Acting Chief Investment Officer. The 35-year loan includes a five-year grace period, with interest rates tied to the Secured Overnight Financing Rate (SOFR) and a 0.25% front-end fee.
The programme targets three critical areas: mainstreaming climate priorities across ministries, advancing adaptation measures, and accelerating mitigation actions to reduce vulnerability. This financing builds on Bangladesh’s strategic efforts to integrate climate resilience into national development policies, particularly for sectors most exposed to environmental risks.
As one of the world’s most climate-vulnerable nations, Bangladesh continues to prioritize adaptive infrastructure and policy reforms. The AIIB funding is expected to strengthen institutional capacity, support green transitions, and safeguard vulnerable communities against escalating climate threats.