BRAC Bank secures $50m IFC funding to boost MSMEs, trade

BRAC Bank, through its offshore banking unit, has secured a USD 50 million senior unsecured Working Capital Solutions (WCS) facility from the International Finance Corporation (IFC).

The private sector arm of the World Bank Group extended the facility to expand access to finance primarily for micro, small and medium enterprises (MSMEs) in Bangladesh. The funding maintains a dedicated focus on women-led businesses and agricultural MSMEs.

This is the fourth consecutive financing facility provided by IFC to BRAC Bank. The facility strengthens the long-standing partnership between IFC and BRAC Bank to advance financial inclusion and private sector growth in the country. It will provide the bank with medium-term U.S. dollar funding, enhancing its capacity to support international trade, capital machinery imports, raw material imports, and other foreign currency-denominated business activities.

Structured as a one-year facility with two annual renewal options, the financing carries a maximum tenor of three years. At least 50 per cent of the proceeds or equivalent local currency facility will go to women-owned MSMEs. Meanwhile, a minimum of 25 per cent will support agricultural MSMEs, addressing financing gaps in two sectors vital for inclusive economic growth and job creation.

Besides expanding financial inclusion, the facility will improve access to foreign currency funding for business enterprises. The investment comes under the SME Envelope of IFC's MSME Finance Platform, which provides financing to financial institutions serving underserved businesses in emerging markets.

As Bangladesh's leading SME-focused bank, BRAC Bank has played a transformative role in expanding access to finance for entrepreneurs. Through its nationwide distribution network and customer-centric model, the bank continues to strengthen the MSME ecosystem by offering sustainable financial solutions. It also supports business integration into regional and global value chains through tailored trade and foreign currency financing.

Tareq Refat Ullah Khan, who is the Managing Director and CEO of BRAC Bank, said, "This investment from IFC reflects its confidence in BRAC Bank's financial strength, governance standards, and longstanding leadership in MSME banking. The facility will strengthen our capacity to finance businesses that drive Bangladesh's economy - particularly women-led enterprises and agricultural MSMEs - while expanding access to foreign currency financing for entrepreneurs engaged in international trade and productive investment."

Wilfried Tamegnon, IFC Acting Country Manager for Bangladesh and Nepal, said, "MSMEs are Bangladesh's biggest engine of jobs. By expanding finance for women-led and agricultural enterprises, this facility will help more firms invest, scale up, and create quality employment across the country."

"IFC is proud to support BRAC Bank in accelerating this growth and strengthening private sector-led job creation," he added.

The transaction reinforces BRAC Bank's role as a leading partner for international development finance institutions. It underscores the bank's commitment to mobilizing global capital to support private sector growth, trade expansion, and sustainable economic development in Bangladesh.

-SA/Press Release