Prime Bank PLC has signed a $90 million term loan agreement with the International Finance Corporation (IFC), a member of the World Bank Group, aimed at supporting export and import-based MSMEs in Bangladesh.
This investment aims to significantly enhance financial access for MSMEs, thereby catalysing economic growth and resilience across the country, according to a press release.
Bangladesh's SME sector, comprising nearly 10 million enterprises and engaging 24 million people, plays a crucial role, contributing 25 per cent to the GDP presently and projected to increase to 35 per cent by 2030.
While these enterprises have encountered challenges, including inflation and financial constraints, there is significant potential for growth and development, with efforts underway to address the estimated $39 billion financing gap.
IFC’s investment targets bridging this gap by bolstering Prime Bank’s capacity to extend financing to MSMEs. This initiative not only addresses immediate liquidity needs but also supports sectors vital to Bangladesh's economic fabric, including those affected by global economic shifts.
Hassan O Rashid, CEO of Prime Bank, and Allen Forlemu, IFC’s Regional Industry Director, FIG–Asia and Pacific, recently signed the agreement on behalf of their respective organisations.
“IFC’s support underscores confidence in Prime Bank and reflects resilience in the Bangladesh economy. Our decade-long partnership with IFC has been instrumental in expanding our operations. We are grateful for IFC’s continued support. This new infusion of $90 million, targeted towards our MSME clients, will significantly grow our MSME portfolio,” said Hassan.
Forlemu said, "Our investment in Prime Bank highlights our commitment to fostering job creation and economic growth in Bangladesh, particularly through empowering MSMEs, including those led by women. By enhancing financial access and strengthening the financial ecosystem, we aim to drive inclusive growth and fortify Bangladesh’s economic foundations.
“We anticipate that our support will not only enhance access to finance but also stimulate broader market resilience, attracting further investments in Bangladesh’s MSME landscape."
Prime Bank, a leading private-sector commercial bank in Bangladesh, was recognised and awarded by IFC under its Global Trade Finance Program (GTFP) in 2023. This facility supplements Prime Bank's existing financial support from IFC, including a working capital loan facility of $50 million and a credit guarantee facility of $80 million under the GTFP.
