Prime Bank

Debt : March 2026

BIO has granted a 20 M USD loan to Prime Bank, a commercial bank established in Bangladesh.

Amount

$ 20,000,000.00

Type of investment

Debt

Development impacts

Local economic growth
Private sector consolidation/innovation
Fight against climate change
Promotion of ESG best practices

Beneficiary locations

Asia: Bangladesh

Investment field

Financial Institutions

Activity

KK.64.190 Commercial banking

Organisation

Prime Bank

Website

https://www.primebank.com.bd/

Domicile

Bangladesh

Strategically, Prime Bank aims to become a leading sustainable and technology-driven financial institution in Bangladesh. It is accelerating digital transformation through its platform “MyPrime” leveraging AI and data analytics to enhance customer experience and operational efficiency. The Bank is expanding financial inclusion through agent banking to target underserved communities. Sustainability remains a core pillar, with strong commitments to green finance and ESG integration. These initiatives, supported by a robust risk management and decent financial performance, position Prime Bank as a resilient institution that continues to grow in a challenging economic and political environment. BIO's investment aims to finance the growth of the bank's loan portfolio to SMEs and Green Financing.

PB has currently more than 61.500 active borrowers and 905.000 depositors. PB operates 147 branches nationwide (including 16 dedicated SME/Agri branches and 2 SME Service centres) with nearly 3,000 employees, serving 1.1 million clients with a comprehensive range of financial products and services.

Development impacts

Local economic growth
The total portfolio, 93% of which is in productive activities, is expected to grow by 43% in the next three years, thus supporting local economic growth and (indirect) job creation.
Private sector consolidation/innovation
The investment strengthens the private sector by supporting a best‑in‑class financial institution with a strong digital backbone, enhancing both operational efficiency and inclusive outreach(already 65% of transactions are executed digitally, rising to an expected 75% by 2027).
Fight against climate change
The use of funds is partly directed to financing of green projects listed under local and progressive taxonomy, supporting funding of sustainable finance segment (renewable energy projects, energy and resource efficiency projects, alternative energy projects, environment-friendly production and clean transportation projects).
Promotion of ESG best practices
The investment promotes ESG best practices by sustaining a leading institution that actively embeds quality, environmental, and social sustainability standards in the local market. It supports the continuous strengthening of internal E&S policies and the implementation of a dedicated climate strategy with measurable targets through 2030. In addition, it reinforces E&S risk management by building capacity across all relevant teams, as outlined in the ESAP, thereby institutionalising robust ESG practices throughout the organisation.

E&S

Overall, the institution has an established E&S and HR policies aligned with national regulations, Bangladesh Bank requirements, and IFC Performance Standards, supported by an operational ESMS.

However, the E&S due diligence identified key improvement areas agreed between BIO and the financial institution, including a fossil fuel exclusion list for BIO‑funded activities, finetuning the ESMS as the current dual E&S risk categorisation system needs clarification and improvement, , consolidating all HR policies, prepare an Occupational Health and Safety (OHS) management plan, and a training management plan.

Environmental and Social (E&S) classification of the project: A.