BRAC Bank gets $50m IFC facility to expand MSME financing

The International Finance Corporation (IFC) will provide a $50 million senior unsecured working capital solutions (WCS) facility to BRAC Bank PLC to expand financing for micro, small and medium enterprises (MSMEs) in Bangladesh, particularly women-led businesses and agricultural enterprises.

This marks the fourth consecutive financing facility extended by IFC to BRAC Bank, according to a press release.

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The facility will provide the bank with medium-term US dollar funding to support businesses engaged in international trade, the import of capital machinery and raw materials, and other foreign currency-denominated activities.

Structured as a one-year facility with two annual renewal options, the financing has a maximum tenor of three years. At least 50 percent of the proceeds, or an equivalent amount in local currency, will be allocated to women-owned MSMEs, while at least 25 percent will support agricultural MSMEs.

The investment is being made under the SME Envelope of IFC’s MSME Finance Platform, which provides financing to financial institutions serving underserved businesses in emerging markets.

Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank PLC, said the investment reflects IFC’s confidence in the bank’s financial strength, governance standards and 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,” he said.

Wilfried Tamegnon, acting country manager for Bangladesh and Nepal at IFC, 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,” he added.

The transaction reinforces BRAC Bank’s role as a leading partner for international development finance institutions and underscores its commitment to mobilising global capital in support of Bangladesh’s private sector growth, trade expansion, and sustainable economic development, the release added.