IFC to invest $50m in City Bank to support Bangladesh SMEs

The International Finance Corporation (IFC), a member of the World Bank Group, will invest $50 million in City Bank PLC to help small and medium enterprises (SMEs) in Bangladesh grow businesses, create jobs, and boost economic recovery.

The international financial institution signed an agreement with City Bank at the latter's head office in the capital recently, the bank said in a press release.

Allen Forlemu, IFC regional industry director of the financial institutions group for Asia and the Pacific, and Mashrur Arefin, managing director and CEO of City Bank, penned the deal.

"Small businesses are essential to Bangladesh's economy. By supporting them, we aim to improve access to finance and promote inclusive growth," Forlemu said.

"We are grateful for IFC's support. This investment will help small businesses overcome challenges and play a bigger role in Bangladesh's future," said Arefin expressing his appreciation.

The investment from IFC will help close the gap in SME financing by providing City Bank with funds to extend new loans to SMEs, particularly those involved in import and export, the press release also said.

This partnership comes at a critical time for the financial sector as inflation and currency challenges have made it harder for businesses to access affordable credit, it added.

Strengthening SME financing will sustain operations, maintain jobs, and support key sectors of the economy.

Building on a decade-long commitment to strengthening Bangladesh's private sector, IFC has invested $765 million in local banks since 2014 to enhance SME financing.

Aziz Al Kaiser, chairman of City Bank, and Martin Holtmann, country manager for Bangladesh, Bhutan and Nepal at IFC, along with other high officials of both the organisations, were also present.