A recent visit to NZ Denim Limited, a green factory in Bangladesh, offered regional central bankers an opportunity to see firsthand how green finance translates from policy frameworks into tangible changes on the factory floor. One of the core objectives of the visit was to demonstrate how policy initiatives undertaken by the Sustainable Finance Department of Bangladesh Bank to promote green and sustainable finance translate into tangible outcomes for ultimate beneficiaries through BRAC Bank.
The visit concluded a three-day programmeorganised from October 6 to October 8, 2026 by Bangladesh Bank and the Alliance for Financial Inclusion (AFI) under the South Asia Region Financial Inclusion Initiative (SARFII). The programme brought together central bankers from Sri Lanka, the Maldives, Nepal, and Pakistan, along with representatives from AFI, Bangladesh Bank, and the Microcredit Regulatory Authority (MRA).
Co-hosted by Bangladesh Bank and BRAC Bank, the factory visit linked participants’ policy-level discussions to the operational realities of a business benefiting from green finance. BRAC Bank’s Corporate Banking and ESG & Sustainable Finance teams joined NZ Denim’s management in facilitating the exchange.
At the factory, participants observed renewable energy installations and energy-efficient machinery while learning how green refinancing had supported the company’s investments in more sustainable production. The visit also provided a platform for BRAC Bank to share its experience in sustainable finance and its work with clients seeking to make their operations more environmentally responsible.
Bangladesh Bank selected NZ Denim, a valued BRAC Bank client, to demonstrate how green financing arrangements work in practice, including the respective roles of the borrowing enterprise and its financing bank. The visit highlighted the importance of connecting policy frameworks and refinancing facilities with businesses’ investment needs and long-term operational priorities.
BRAC Bank brings considerable experience to this agenda. The Bank has been recognised as one of Bangladesh Bank’s top sustainable banks for five consecutive years through its Sustainability Rating and ranked first among Bangladeshi banks in Bloomberg’s ESG Rating. These recognitions, along with its experience facilitating access to green refinancing facilities, provided a strong foundation for sharing practical insights with the visiting delegation.
Reflecting on the visit, Md. Habibur Rahman, Additional Director at Bangladesh Bank, said: “The visit allowed participants to see how green finance policies translate into investments on the factory floor. Cooperation among regulators, banks and businesses is essential to making these investments accessible to more enterprises.”
NZ Denim’s management explained how investments in cleaner energy and more efficient technologies can improve production processes and support business performance. The factory’s rooftop solar installation, energy-efficient machinery and effluent treatment plant (ETP) illustrated how environmental considerations can be integrated into industrial operations.
Md. Saleudh Zaman Khan (Jitu) of NZ Denim said: “BRAC Bank’s support in facilitating access to Bangladesh Bank’s green refinancing facilities has enabled us to invest in renewable energy and energy-efficient technologies. These investments are strengthening our operational efficiency, supporting business growth and reinforcing our commitment to sustainable manufacturing. We were pleased to welcome the delegation and share our ongoing efforts to make production more sustainable and environmentally responsible.”
For the visiting regulators, the experience offered an opportunity to consider how policy measures and financial institutions can work together to encourage businesses to adopt greener technologies. It also underscored the value of cross-country knowledge-sharing as South Asian economies explore ways to expand sustainable finance and support the transition to more resource-efficient production.
Paras Abbasi of the State Bank of Pakistan said: “Visits like these facilitate cross-learning and allow us to see how businesses across the region are transitioning towards greener production. Bangladesh’s experience in the textile sector offers valuable insights into how central banks, commercial banks and businesses can work together to support this transition.”
Beyond the factory tour, the visit was designed to deepen participants’ understanding of green finance beyond policy development and programme design. Bringing regulators, financial institutions and businesses together created space for practical discussion on implementation, challenges and lessons that could inform sustainable finance initiatives in their respective markets.
Ms. Nangsi Dema, Regional Manager – Asia at AFI, said: “Peer learning is most meaningful when regulators can see the outcomes of inclusive financing decisions firsthand. This visit demonstrated how cooperation among regulators, financial institutions and private enterprises can support sustainable and commercially viable business growth, including by helping micro, small and medium-sized enterprises adopt greener and innovative technologies.”
For BRAC Bank, the engagement reflects the importance of collaboration in advancing sustainable finance – not only by facilitating access to appropriate financing, but also by sharing experience and supporting a broader understanding of how green investment can benefit businesses and the environment.
Tareq Refat Ullah Khan, Managing Director & CEO of BRAC Bank, said: “We appreciate Bangladesh Bank’s selection of BRAC Bank to facilitate this visit and share our sustainable finance practices with regional regulators. Supporting clients in investing in renewable energy and energy-efficient technologies is an important part of helping them build stronger, more resilient businesses for the future.”
The visit offered a practical illustration of how green finance can bridge policy ambition and industrial action. By bringing regional regulators into a working factory and facilitating direct exchanges with the business and its financing partner, the initiative supported a wider conversation on scaling sustainable finance, strengthening enterprise competitiveness and encouraging cleaner, more efficient manufacturing across the region.