IFC provides $50 million to Prime Bank to support exporters, importers

The International Finance Corporation (IFC) is providing $50 million to Prime Bank Limited to support export and import-based businesses in Bangladesh to cope with global uncertainties brought on by the Covid-19 pandemic.

This funding will support working capital, trade finance, and foreign exchange liquidity needs of export and import-based entities borrowing through Prime Bank's Offshore Banking Unit, the IFC said in a statement today.

The financing package is part of IFC's 'Fast Track Covid-19 Facility,' a package designed to support countries and the private sector to cope with the impacts of the pandemic under the Working Capital Solutions (WCS) programme, it said.

This IFC engagement with Prime Bank will also be supported by the International Development Association's Private Sector Window Blended Finance Facility, according to the statement.

"IFC's support reflects the resilience of Bangladesh's economy and confidence in Prime Bank. This fresh funding of $50 million targeted for SME clients will help us grow the SME portfolio of the bank," said Prime Bank Managing Director and Chief Executive Officer Hassan O Rashid.

"It is clear the impacts of Covid-19 are still being felt by a number of businesses in Bangladesh's key industries, effectively constraining their operating ability," said Allen Forlemu, regional industry director for the financial institutions group at the IFC.

"This funding package is designed specifically to help ensure businesses in Bangladesh can continue to trade and have access to working capital, helping them maintain operations and preserve jobs. Small and medium-sized businesses, which are the backbone of the country, and have been particularly impacted by the pandemic, are expected to benefit the most from this IFC funding."