The New Nation - Internet Edition

BRAC has completed the closing of a new USD 55 million equivalent taka loan facility from a group of International lenders.

This is the first time that a 7 year international unsecured syndicated term loan facility has been structured and subscribed by international lenders for a micro finance institution in Bangladesh.

The facility was structured by Standard Chartered Bank and RSA Capital as joint co-lead arrangers and subscribed and arranged by FMO of Netherlands, Norfund of Norway and KfW Bankengruppe of Germany. The financing arrangement is aimed at supporting the microfinance activities of BRAC across the rural Bangladesh.

Standard Chartered Bank and RSA Capital are the mandated co-lead arrangers to the facilities. FMO and Norfund are lending USD 25 million in equivalent BOT and USD 10 million in equivalent BDT respectively. SCB is lending USD 20 million in equivalent BDT under guarantee from KfW. SCB will also act as the Account Bank for the facilities.

This first of its kind internationally syndicated unsecured local currency financing arrangement, in Bangladesh, demonstrates the confidence of international investors in BRAC and Bangladesh. This facility will assist BRAC to further expand its microfinance activities in the rural areas providing much needed impetus to the progress of the SME, agriculture during the post flood & Cyclone reconstruction period.