BRAC Bank has secured a $50 million financing facility from the International Finance Corporation (IFC) to expand lending to micro, small and medium enterprises (MSMEs), particularly women-led and agricultural businesses.
According to a press release, the one-year senior unsecured Working Capital Solutions (WCS) facility was secured through the bank’s offshore banking unit and can be renewed twice, with a maximum tenor of three years.
At least 50% of the facility will be allocated to women-owned MSMEs and 25% to agricultural MSMEs, helping address financing gaps in the two sectors.
The facility will also strengthen the bank’s capacity to provide US dollar financing for businesses involved in international trade, imports of capital machinery and raw materials, and other foreign currency transactions.
This is the fourth consecutive financing facility provided by IFC to BRAC Bank. The latest funding comes under IFC’s MSME Finance Platform, which supports financial institutions serving underserved businesses in emerging markets.
Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank, said the facility would strengthen the bank’s capacity to finance women-led enterprises and agricultural MSMEs while expanding access to foreign currency funding.
Wilfried Tamegnon, IFC’s acting country manager for Bangladesh and Nepal, said MSMEs are a major source of jobs in Bangladesh and the financing would help businesses invest, expand and create employment.
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