EIB Global, the development arm of European Investment Bank (EIB), has announced a 60 million Euros financing agreement with BRAC Bank PLC in Bangladesh, marking the longest‑tenor funding ever extended by a development finance institution to a commercial bank in the country.
The 12‑year facility comprises a €40 million microfinance loan and a 20 million Euros framework loan aimed at accelerating green and circular investments by local companies, said a press release.
The 40 million Euros loan is expected to support more than 2,500 small enterprises in Bangladesh. The financing will enable investments in cleaner production, resource efficiency, waste reduction, renewable energy and modern equipment, with the entire amount contributing to climate action and environmental sustainability.
Practical initiatives may include solar rooftop photovoltaic systems, greener buildings, improved waste management, replacement of inefficient refrigerators and washing machines, deployment of electric two‑ and three‑wheel vehicles, promotion of clean cooking solutions, and improved access to safe water through rainwater harvesting and household water filters, the release adds.
The 20 million Euros framework loan will finance projects to accelerate the transition to sustainable and circular production in the Bangladeshi private sector, particularly in the ready‑made garment, textile and other export‑focused industries.
Bangladesh is one of the world’s leading apparel producers and the second largest source of apparel for the European Union (EU). As EU buyers and legislation increasingly demand sustainable and transparent supply chains, access to long‑term green finance is becoming essential for local suppliers to remain competitive.
The loan will help companies meet rising sustainability standards and strengthen trade between Bangladesh and the EU.
EIB Vice‑President Nicola Beer said, “Bangladesh’s garment and textile sectors are central to the country’s economy and deeply connected to European markets. By partnering with BRAC Bank, a globally recognised institution for financial inclusion, EIB Global is helping businesses modernise production, use resources more efficiently and meet higher sustainability standards. This is good for climate action, good for trade and good for the long‑term resilience of Bangladesh’s private sector.”
BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said, “This partnership with the European Investment Bank marks an important step in accelerating green and circular investments across the country’s industrial value chains. The financing will help businesses modernise operations, improve resource efficiency and meet evolving global sustainability standards, strengthening Bangladesh’s competitiveness in international markets while supporting a more resilient and sustainable economy.”
Ambassador and Head of Delegation of the European Union to Bangladesh, Michael Miller, said, “This partnership is a strong example of Global Gateway in action, bringing European investment together with Bangladeshi entrepreneurship to support a greener, more competitive and more resilient economy.”
“It will enable businesses in the textile and garment value chains to invest in cleaner technologies, circular solutions and energy efficiency, strengthening sustainable trade between Bangladesh and the European Union while supporting climate action, decent work and long‑term growth,” he added.
