EIB and BRAC Bank Launch €60 Million Green Finance Deal in Bangladesh

EIB Vice-President Nicola Beer said Bangladesh's garment and textile industries are closely connected to European markets and play a central role in the country's economy.

EIB Global, the development arm of the European Investment Bank (EIB), has signed a €60 million financing agreement with BRAC Bank PLC to support green investment and sustainable business growth across Bangladesh. The package represents the longest-tenor financing ever provided by a development finance institution to a commercial bank in Bangladesh, giving businesses access to long-term funding that is rarely available in the local market. The 12-year financing package consists of a €40 million microfinance loan and a €20 million framework loan aimed at helping businesses adopt cleaner technologies, improve resource efficiency and accelerate the country's transition to a more sustainable economy.

The larger €40 million facility is expected to benefit more than 2,500 small enterprises, supporting investments that contribute directly to climate action and environmental sustainability. Businesses will be able to finance projects such as rooftop solar photovoltaic systems, energy-efficient buildings, waste reduction initiatives, cleaner production methods, modern machinery and improved water management. The programme will also support the replacement of inefficient appliances in small businesses, the adoption of electric two- and three-wheel vehicles, clean cooking technologies, rainwater harvesting systems and household water filtration solutions.

Textile and garment sector to benefit from sustainable upgrades

The additional €20 million framework loan will focus on helping Bangladesh's private sector adopt circular production practices, particularly within the country's ready-made garment, textile and other export-oriented industries.

EIB Vice-President Nicola Beer said Bangladesh's garment and textile industries are closely connected to European markets and play a central role in the country's economy. She noted that the partnership with BRAC Bank will help companies improve production processes, use resources more efficiently and strengthen long-term resilience while supporting climate goals and international trade.

BRAC Bank Managing Director and Chief Executive Officer Tareq Refat Ullah Khan said the agreement builds on the bank's longstanding support for entrepreneurs and businesses that drive Bangladesh's economic growth. He added that the financing will enable companies to modernise operations, strengthen competitiveness and adapt to changing global sustainability expectations.

Partnership strengthens trade and climate action

The European Union also welcomed the agreement, describing it as an example of the Global Gateway initiative in action. EU Ambassador to Bangladesh Michael Miller said the partnership combines European investment with Bangladeshi entrepreneurship to promote a greener, more resilient economy.

He said the financing will allow businesses across the textile and garment value chains to invest in cleaner technologies, circular business models and energy-efficient production, supporting sustainable trade between Bangladesh and the European Union while encouraging climate action, decent employment and long-term economic growth.

By providing long-term green financing alongside technical support for sustainable investment, the partnership aims to strengthen Bangladesh's industrial competitiveness, expand access to environmentally responsible technologies and help businesses meet international market expectations as global demand for cleaner and more transparent supply chains continues to grow.