BRAC Bank gets €60m EIB loan to support green investments

The European Investment Bank (EIB) has signed an agreement to provide €60 million to BRAC Bank PLC for accelerating environmentally friendly investments and supporting Bangladesh’s green transition.

The 12-year financing facility has been arranged by BRAC Bank’s offshore banking unit, according to a press release from the bank.

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Of the total amount, €40 million will help finance more than 2,500 small enterprises investing in cleaner production, renewable energy, resource efficiency, waste reduction and modern equipment.

Eligible investments include rooftop solar photovoltaic systems, green buildings, improved waste management, electric two and three-wheelers, clean cooking technologies, rainwater harvesting and household water filtration systems.

The remaining €20 million framework loan will finance larger projects promoting sustainable and circular production across Bangladesh’s export-oriented industries, including the readymade garment and textile sectors.

Gelsomina Vigliotti, vice-president of the EIB, said, “This agreement shows how European finance can support greener, more resilient, and more competitive supply chains. By partnering with BRAC Bank, a globally recognised institution for financial inclusion, we are helping Bangladeshi companies invest in cleaner production, circular solutions, and energy efficiency, while supporting the EU’s wider commitment to sustainable trade and climate action.”

“BRAC Bank has long supported entrepreneurs and businesses that are central to Bangladesh’s growth story,” said Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank.

“This partnership with the European Investment Bank marks an important step in accelerating green and circular investments across the country’s industrial value chains.”

“The financing will help businesses modernise operations, improve resource efficiency, and meet evolving global sustainability standards, strengthening Bangladesh’s competitiveness in international markets while supporting a more resilient and sustainable economy,” he added.

According to the press release, the funding will support circular economy initiatives, renewable energy, energy efficiency, sustainable waste management and cleaner, more resource-efficient production. It is also expected to help businesses meet evolving sustainability standards while strengthening Bangladesh-EU trade.

Bangladesh is the world’s second-largest apparel supplier to the European Union, with the sector accounting for about 85 percent of the country’s exports.

As European buyers increasingly demand sustainable and transparent supply chains, access to long-term green finance is becoming increasingly important to help the industry remain competitive in global markets.