British International Investment (BII) has announced a $50 million loan to Pubali Bank Limited, a press release said Saturday. The loan facility will help to increase climate-related lending and boost climate mitigation projects across Bangladesh. This green loan from BII will primarily be used for projects in the renewable energy, green buildings, textile and manufacturing sectors. The facility will enable Pubali to extend climate finance loans to its portfolio of corporate clients in such sectors, enabling them to purchase key equipment required in climate projects and implement climate-related technological solutions in Bangladesh.
This facility marks BII’s first climate finance investment in Bangladesh and demonstrates the DFI’s commitment to and supporting its financial institution partners on their Paris alignment journey. BII’s climate change strategy outlines its pledge to ensure that 30 per cent of its total commitment will be in climate finance, which will be deployed to accelerate climate action in markets that are at higher risk to the effect of climate change. BII’s capital will also help contribute toward Bangladesh’s 2030 carbon emission reduction target set at COP26.
British High Commissioner to Bangladesh, Robert Chatterton Dickson, said: “I am delighted that British International Investment (BII) is backing Bangladesh’s Pubali Bank in developing its green financing capacity and expanding its climate portfolio.” Mohammad Ali, MD & CEO (CC), Pubali Bank Limited, said: “Climate change has resulted in an economic shock in Bangladesh where we’re seeing reduced agricultural yields, damaged infrastructure, and increased commodity cost.”
M. Rehan Rashid, Country Director, Bangladesh, at BII, commented: “The landmark climate investment to Pubali marks BII’s commitment to playing a role in supporting economic and environmental transformation in Bangladesh.”
