BRAC Bank has secured a landmark EUR 60 million long-term financing facility from the European Investment Bank (EIB), marking the longest-tenor funding ever extended by a development finance institution to a commercial bank in Bangladesh.
Arranged through BRAC Bank’s Offshore Banking Unit, the 12-year facility will expand access to long-term green financing, enabling businesses to accelerate sustainable investments and strengthen Bangladesh’s transition towards a greener economy.
The financing will support businesses, particularly in the ready-made garment and textile sectors, to invest in circular economy initiatives, renewable energy, energy efficiency and sustainable waste management. As one of Bangladesh’s largest export industries, the sector stands to benefit from increased access to long-term financing for cleaner, more resource-efficient production.
Of the total facility, EUR 40 million will support more than 2,500 small enterprises through investments in cleaner production, renewable energy, resource efficiency, waste reduction and modern equipment, with the full amount contributing to climate action and environmental sustainability. Eligible investments include rooftop solar photovoltaic systems, green buildings, improved waste management, electric two- and three-wheelers, clean cooking technologies, rainwater harvesting and household water filtration solutions.
The remaining EUR 20 million framework loan will finance larger-scale projects that accelerate sustainable and circular production across Bangladesh’s export-oriented industries, including the ready-made garment and textile sectors.
Bangladesh is the world’s second-largest apparel supplier to the European Union (EU), with the sector contributing around 85% of the country’s exports. As European markets increasingly demand more sustainable and transparent supply chains, access to long-term green finance has become critical for local manufacturers to remain globally competitive. The facility will help businesses meet evolving sustainability standards while strengthening trade between Bangladesh and the EU.
EIB Vice-President Gelsomina Vigliotti said, “This agreement shows how European finance can support greener, more resilient and more competitive supply chains. By partnering with BRAC Bank, a globally recognised institution for financial inclusion, we are helping Bangladeshi companies invest in cleaner production, circular solutions and energy efficiency, while supporting the EU’s wider commitment to sustainable trade and climate action.”
“BRAC Bank has long supported entrepreneurs and businesses that are central to Bangladesh’s growth story,” said Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank. “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.”