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Proparco extends USD 50 million loan to City Bank to support climate finance, women-led businesses and SMEs growth in Bangladesh
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Proparco, the private sector financing arm of the Agence Française de Développement (AFD) Group, has signed a USD 50 million senior loan agreement with City Bank PLC to support climate finance, women-led businesses and small and medium-sized enterprises (SMEs) across Bangladesh.
This first collaboration between Proparco and City Bank PLC marks a significant step towards strengthening access to long-term financing for strategic sectors of the Bangladeshi economy. The facility will help expand City Bank’s sustainable finance portfolio while contributing to inclusive and resilient economic growth.
This project will support climate mitigation projects, women-led businesses and SMEs across Bangladesh. The facility will help expand access to long-term financing for three key drivers of sustainable and inclusive economic growth.
Accelerating climate-resilient development
Founded in 1983, City Bank PLC is one of Bangladesh’s leading private commercial banks and a recognized pioneer in sustainable finance. The bank has committed to a net-zero emissions trajectory through its membership in the Net-Zero Banking Alliance (NZBA) and the United Nations Environment Programme Finance Initiative (UNEP FI). Its sustainability strategy focuses on key sectors including ready-made garments, textiles, energy, steel and pharmaceuticals.
Bangladesh is part of the countries most exposed to the impacts of climate change. Supporting climate investments is therefore essential to strengthen resilience and support the country's transition towards a low-carbon economy.
Through this partnership, Proparco and City Bank will contribute to scaling investments that reduce greenhouse gas emissions while supporting Bangladesh’s long-term sustainable development objectives.
Advancing women's economic empowerment
The facility will also contribute to advancing women’s economic participation through dedicated financing for businesses meeting the 2X Challenge criteria. Supporting women entrepreneurs remains a key development priority in Bangladesh and aligns with ongoing national efforts to improve access to finance for women-led SMEs.
City Bank has demonstrated a strong commitment to this agenda through its flagship City Alo programme, which offers tailored financial products, advisory services and capacity-building support for women entrepreneurs. In 2024 alone, the bank integrated more than 5,000 new women entrepreneurs into its empowerment and business development initiatives.
By increasing access to finance for women-led businesses, the operation aims to foster greater economic inclusion, strengthen business resilience and create new opportunities for women across the country.
Unlocking growth for small businesses
SMEs are a cornerstone of Bangladesh’s economy, playing a vital role in employment, entrepreneurship and economic growth. Yet access to medium- and long-term financing remains limited.
This partnership will help address this financing gap and support the growth of businesses operating across a wide range of sectors. By supporting SME growth, the facility is expected to contribute to job creation, productivity gains and broader private sector development.
This transaction contributes to several of Proparco’s strategic priorities, including investing in a sustainable and resilient economy, protecting the planet and reducing inequalities. It also supports the achievement of the Sustainable Development Goals (SDGs), notably SDG 13 (Climate Action), SDG 8 (Decent Work and Economic Growth) and SDG 5 (Gender Equality).