CDC Group, the UK-based development finance institution, has committed to extend a $30-million loan to Bangladeshi lender BRAC Bank, according to a press release.
BRAC Bank, which has the largest market capitalization in Bangladesh, is sponsored by BRAC NGO that focuses on impact investments and financial inclusion.
BRAC Bank has 1.2 million customers in over 187 branches, serving customers across the SME, corporate and retail segments in the banking industry.
In a parallel announcement, CDC also appointed Rehan Rashid to lead the development institution’s activities in Bangladesh. Based in Dhaka, Rashid will form investment partnerships with local businesses in the country to accelerate the commercial success and to apply the internationally recognized environmental, social and governance standards.
Rashid will also work closely with CDC teams across Asia including in Mumbai, Bangalore, and Yangon. Rehan, who previously worked for IFC, held several positions at global financial institutions including ICICI Bank Limited, the Dubai Islamic Bank and HSBC.
CDC has been investing in Bangladesh since the early 80s. Over the last 10 years, the British financier has committed in excess of $205 million to Bangladesh.
The group has been investing in the wider South Asian region for over 30 years and now has more than 300 investee partners, valued at nearly $2 billion.
“CDC will help BRAC Bank expand credit facilities to export-oriented Bangladeshi businesses allowing them to explore further international markets. As Bangladesh graduates to a middle-income country, from a least developed country (LDC), it’s businesses must explore the international market to boost GDP,” BRAC Bank managing director & CEO Selim R. F. Hussain said.