Dhaka, Bangladesh, October 3, 2011
—IFC, a member of the World Bank Group, has approved $50 million trade finance lines to Bangladesh’s Brac Bank, Eastern Bank, and Southeast Bank under the Global Trade Finance program, which promotes trade among emerging markets.
“Bangladesh is a key market for IFC,” said Georgina E. Baker, IFC Director for Short-Term Financial Products. “Trade is a driving force and an engine for growth in many developing countries. IFC’s Global Trade Finance Program will help Bangladesh enhance its engagement with the global trade network.”
Launched in 2005, the IFC Global Trade Finance Program aims to increase developing countries’ share of global trade and the flow of goods and services between emerging markets.
Baker, currently on a visit to Bangladesh, said IFC seeks to offer approximately $250 million in trade finance support in the coming year.
Pledging to further strengthen IFC’s partnership with Bangladesh, Baker encouraged financial and private institutions and the government to work together to stimulate positive economic sentiment and increase opportunities for growth in the country. IFC provides both investment and advisory services in Bangladesh to strengthen economic sectors and reduce constraints in accessing finance
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In Bangladesh, IFC has a committed portfolio of $268 million in projects in the cement, banking, private equity, agribusiness, and micro-finance sectors, among others. Its pioneering work with Delta Brac Housing Finance Corporation Limited has enabled the establishment of the first-ever private mortgage company in Bangladesh and the first-ever SME bank, Brac Bank.
With the help of equity investment from IFC, Industrial Development Leasing Company in 1985 became the first leasing company established in Bangladesh. Other IFC investments in the country include “Frontier PE,” Bangladesh’s first equity fund. IFC also invested $12 million to launch Small Enterprises Assistance Funds—a permanent capital vehicle aimed at supporting 300 small and medium enterprises.
More recently, IFC launched Bangladesh Small and Medium Enterprise Liquidity Facility, an $80 million short-term liquidity fund to provide partner banks in Bangladesh with working capital and trade financing solutions.
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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