Media contacts
For questions about financing or funding possibilities, business offerings and acquisition, please use the contact form.
The number below is for media inquiries only.
Monica Beek
Media Spokesperson
T: +31 70 314 9130
M.Beek@fmo.nl
USD 70 million syndicated loan for SME financing by BRAC Bank
BRAC Bank Limited (BBL) in Bangladesh has received a USD 70 mln syndicated loan. The loan has a tenor of 5 years.
The loan has been provided by The Netherlands Development Finance Company FMO (who acted as Mandated Lead Arranger). In addition to USD 13.7 mln provided by FMO, participants include ACTIAM (USD 3.8 mln), OFID (USD 15 mln), OeEB (USD 10 mln), BIO (USD 10 mln) and ResponsAbility (USD 2.5 mln). Proparco has committed to follow in 2015 with an additional USD 15 mln, which will bring the total to USD 70 million.
This landmark transaction is the largest international syndicated loan for any Bank in Bangladesh. For two of the participants it is also the first financing for a Bangladeshi bank.
Mr. Syed Mahbubur Rahman, CEO of BRAC Bank commented: "BRAC Bank had been in the forefront of setting precedences in the financing arena not limited to SME Banking but covering the entire gamut of financial solutions across a wide range of customer segments. This milestone deal is a testament to the belief of our international partners' to BRAC Bank's commitment to reach out the SME entrepreneurs throughout Bangladesh offering them financing solutions to support their business and elevate their economic condition. This first of its kind deal will set a precedence to other Bangladeshi banks to avail similar extent of financing from international financiers and open up financing avenues for SME and Corporate clients."
“This debt facility provides BRAC Bank with the possibility to expand their business. It will increase the availability of funding for Bangladeshi small and medium enterprises, thereby supporting the creation of jobs and economic development of Bangladesh”, said Mr. Nanno Kleiterp, CEO of FMO.
This five-year loan will support BBL in providing its clients with sustainable financing, and thanks to its extensive branch network, the facility will particularly benefit small and medium entrepreneurs in rural and suburban parts of the country, where the supply of banking services is still limited. FMO also coordinated the Environmental and Social Action Plan as part of the loan agreement.
BBL was established in 2001 by BRAC NGO with the aim to service SMEs alongside their traditional focus on microfinance and poverty alleviation. BRAC Bank Limited has a value based approach and uses the triple bottom line of people, planet and profit.
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.6 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
About BRAC Bank
BRAC Bank started its journey in 2001 and in just 13 years proved to be the country’s fastest growing bank .With total assets of USD 2,241 million and equity of USD 184.8 million (as of March 2014), BBL has become the largest SME bank in the country. The company’s loan portfolio comprises of 16% retail loans. Currently, BBL has an extensive network of 157 branches (of which 70 SME branches) covering the country’s urban, suburban and rural areas. Especially the smaller and rural SME’s in Bangladesh have limited access to finance. BBL focuses on providing finance to this underserved segment and therefore the funding from this syndicated facility has a high development impact. Since inception, BBL has disbursed SME loans to around 415 thousand people, generating direct employment to approximately 1.7 million people. Just in 2013, 8,885 new SME borrowers were included in the portfolio.
Press contact:
Paul Hartogsveld
Senior Communications Officer (PR)
T: +31 70 314 9928 M: +31 6 11589127 E: p.hartogsveld@fmo.nl