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BRAC Bank is an institution specialized in financing unbanked SMEs in Bangladesh
Project
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Signature date
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Location
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Bangladesh
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Financing tool
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Financing amount (Euro)
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13731386.82
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Financing details
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Loan of USD 15m and technical assistance of USD 63,000
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Customer
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Brac Bank Limited
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Type of customer
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Financial institution
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Project number
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PBD1005
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Environmental and social ranking
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IF-B
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco is contributing to strengthening the financing capacity of BRAC Bank – whose clients are unbanked SMEs in Bangladesh – and is financing training in risk management for ten of the bank’s executives.
Client presentation
BRAC Bank Limited (BBL) is a universal bank which, with a market share of 2%, ranks among the 15 largest commercial banks in Bangladesh. It was founded in 1999 by the NGO BRAC and is a leading player in microfinance. The bank is specialized in the un-banked SME segment in rural and peri-urban areas. BBL has a network of 171 branches, 458 SME service points and a staff of over 6,500 employees.
Project description
PROPARCO’s credit line will mainly be earmarked for local SMEs that benefit from income in USD. PROPARCO's financial support will allow the bank to take part in training on environmental and social risk management, alongside five other Bangladeshi banks.
Project impact
This operation will strengthen local capacities to finance the local economic base. It will support the development of SMEs in Bangladesh, which are sources of employment and drivers of development. It will also contribute to improving access to financial services in the country. In addition, the financial support has allowed 10 directors from BRAC Bank to be trained in environmental and social risk management, and the integration of the relevant good practices into the bank.