City Bank, UNDP partner to boost green bonds, climate finance

City Bank PLC yesterday signed a memorandum of understanding (MoU) with the United Nations Development Programme (UNDP) to accelerate climate finance in Bangladesh, with a strategic focus on developing the country’s emerging green and thematic bond market.

Mashrur Arefin, managing director and CEO of City Bank PLC, and Stefan Liller, resident representative of UNDP Bangladesh, signed the MoU at a ceremony held at the bank’s head office in Dhaka, according to a press release.

Speaking on the occasion, Arefin said, “City Bank is currently working on issuing a green bond. Our partnership with UNDP will help unlock new avenues for sustainable financing and accelerate the growth of Bangladesh’s green bond market.”

Liller said, “Unlocking new sources of climate finance is critical for Bangladesh. This collaboration represents an important step towards connecting global sustainable finance mechanisms with local opportunities and needs.”

Under the agreement, City Bank aims to play a pioneering role in issuing one of the first green bonds by a commercial bank in Bangladesh.

The initiative will support the financing of eligible green projects, including climate adaptation and mitigation efforts, contributing to a more resilient and sustainable economy.

As part of the partnership, UNDP will provide technical assistance to support City Bank in the pre-issuance phase of the green bond.

It will also help develop a robust green bond framework aligned with international standards, covering impact measurement, reporting, governance of proceeds, and overall structuring to ensure transparency, credibility, and investor confidence.

The partnership is expected to set benchmarks for future thematic bond issuances and encourage greater participation from the private sector in sustainable finance.

As a leading private commercial bank, City Bank PLC remains committed to advancing sustainable finance and supporting Bangladesh’s climate priorities.

This partnership with UNDP reinforces its focus on strengthening ESG practices and shaping a more sustainable financial ecosystem.