The United Nations Development Programme (UNDP) and City Bank PLC have signed an agreement to advance climate finance in Bangladesh through the development of a green bond market.
The memorandum of understanding was signed on 30 March at City Bank’s head office in Dhaka, according to a press release.
UNDP Bangladesh Resident Representative Stefan Liller and City Bank PLC Managing Director and CEO Mashrur Arefin signed the agreement.
The partnership aims to mobilise private sector investment for climate-resilient development by supporting thematic bonds focused on green financing.
Under the arrangement, UNDP will provide technical assistance to help City Bank issue its first green bond as a commercial bank in Bangladesh.
The proposed bond will finance eligible green projects, including climate adaptation and mitigation initiatives.
Bangladesh’s vulnerability to climate change and the global shortfall in adaptation financing make such instruments increasingly important, the statement said.
Unlocking new sources of climate finance is essential for a country on the frontlines of climate change, said UNDP Bangladesh Resident Representative Stefan Liller, adding that the collaboration will help connect sustainable finance with local needs.
City Bank PLC Managing Director and CEO Mashrur Arefin said the bank is working on issuing a green bond and that the partnership will provide technical expertise and global reach to expand financing avenues.
UNDP will also support alignment with international standards through guidance on green bond frameworks, impact measurement, reporting, and governance of proceeds to improve transparency and attract investors.
