BRAC Bank Limited has signed a USD 50 million loan agreement with DEG (Deutsche Investitions-und EntwicklungsgesellschaftmbH) to support SMEs, a press release said Wednesday.
DEG is a German development finance institution supporting private enterprises operating in developing and emerging-market countries.
BRAC Bank will use these funds to provide loans to local micro, small and medium-sized enterprises. At least half of the fund is earmarked for businesses run by women.
An important aspect of DEG’s support for BRAC Bank is the advancement of women. As part of a ‘Gender Action Plan,’ financing offers for female entrepreneurs and share of women in BRAC Bank’s workforce and management levels will be increased. DEG will assist BRAC Bank through its Business Support Services.
Selim R. F. Hussain, Managing Director and CEO of BRAC Bank, said: “Institutionalizing SME Banking and making it financially viable required strong governance and a customer-centric business model. Our organization’s dynamic culture and dedicated staff drive the company to its pinnacle.”
“Our support for BRAC Bank in areas such as gender finance is a good example of how we are focusing even more specifically on further increasing our customers’ positive developmental impact. At the same time, we are promoting greater participation of women in Bangladesh’s economic life,” said Monika Beck, member ofDEG’s Management Board.