Dhaka, Bangladesh, June 10, 2012
—IFC, a member of the World Bank Group, is helping Bangladesh’s Eastern Bank develop the first Sustainable Energy Finance loan product in the country to help companies implement energy-saving measures, crucial in an energy-poor country, and boosting the competitiveness of private enterprises who take out such loans.
Eastern Bank developed EBL Green Credit with assistance from the SouthAsia Enterprise Development Facility, managed by IFC in partnership with the UK Department for International Development and the Norwegian Agency for Development Cooperation.
Fakhrul Alam, Deputy Managing Director of Eastern Bank, said, the bank aims to finance $20 million in sustainable energy finance projects over the next five years,and avoid 200,000 tons of carbon emission in the process. Even though Bangladesh formulated a renewable energy policy in 2008,incentives to encourage private sector investments have been lacking.
Dr. Atiur Rahman, Governor of Bangladesh Bank, said, “Bangladesh Bank is firmly committed to contribute significantly as a regulatory authority to the Sustainable Energy Finance agenda in Bangladesh.” Dr Rahman spoke at the EBL Green Credit launching ceremony to participating industry experts, lenders, representatives from financial institutions,and multilateral donors.
Dr. Tawfiq-e-Elahi Chowdhury BB, Energy Adviser to the Prime Minister,said,“Sustainable development, including energy for all, is the strategy to go forward. The Green Credit product should help promote and finance the energy mix stipulated in the Energy Policy of the government of Bangladesh.”
Kyle F. Kelhofer, IFC Country Manager in Bangladesh, said, “This pioneering initiative is an important milestone in Bangladesh's continuing efforts to promote international best practices in climate change financing."
The power sector in Bangladesh relies heavily on natural gas.An acute shortfall in gas supply threatens to stall industrialization as well as the government’s plan to electrify the entire country by 2020, highlighting the need for private sector investments in sustainable energy financing.
IFC’s Sustainable Energy Finance program aims to lower spending on costly energy imports, promote energy security, and improve the environment. Significantly, in many cases operating savings alone can repay energy-efficiency loans.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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