BRAC Bank ltd

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BRAC Bank, which was founded in 1999 by the renowned BRAC NGO, is a commercial bank with the strongest SME operations on the Bangladesh market. With more than 150 branches and nearly 400 SME unit offices covering urban, suburban and rural areas, the Bank offers a full array of financial services to retail, SME and corporate clients. The focus lies however on SME clients, and particularly small businesses that are in the process of formalizing and are looking for loans between USD 10 K and 100 K.

BIO is participating in a syndicated senior loan facility arranged by the Dutch development bank FMO, alongside other development finance institutions. The loan facility is set up to support the growth of the Bank’s SME loan portfolio in Bangladesh: half of the facility will be used to fund export-oriented SME clients in US dollars and the other half will be used to provide local currency loans to SMEs active on the local market.

Development impact:

  • Local economic growth: BRAC Bank is the leading SME bank in the country. Half of the facility will be used to fund the Bank’s export-oriented SME clients in USD, and the remaining half will be used to provide local currency loans to SMEs active on the local market. For the purpose of this transaction the Bank will categorize SMEs as companies to which its exposure is ≤ USD 100k (small) and 1m (medium).

Website : www.bracbank.com 

  • Investment amount (€):

    € 7.25 M

  • Contract signature :

    2014

  • Nature of intervention :

    Debt

  • Development impacts :

    • 1 — Local economic growth