Brac Bank to borrow $50m from German institution

Brac Bank Limited will get $50 million loan from a German development finance institution to support SMEs and women entrepreneurs in Bangladesh.

To this end, Brac Bank has signed an agreement with the Deutsche Investitions- und Entwicklungsgesellschaft (DEG) to take the long-term loan, the bank said in a press release yesterday.

DEG supports private enterprises operating in developing and emerging-market countries.

Brac Bank will use the fund to provide loans to local micro, small and medium enterprises. At least half of the fund is earmarked for businesses run by women.

Selim RF Hussain, managing director and chief executive officer of Brac Bank, said institutionalising SME banking and making it financially viable required strong governance and a customer-centric business model.

"Our organisation's dynamic culture and dedicated staff drive the company to its pinnacle. However, because this is our mandate, we are unwavering in our commitment to sustain the expansion of SME lending."

Monika Beck, member of DEG's management board, said, "With our financing, we are supporting the growth of a successful financial institution so that it can reach the important target group of small and medium-sized enterprises even better."

"Our support for Brac Bank in areas such as gender finance is a good example of how we are focusing even more specifically on further increasing our customers' positive developmental impact. At the same time, we are promoting greater participation of women in Bangladesh's economic life," Beck said.