EIB Global and BRAC Bank unlock €60 million to accelerate Bangladesh's green transition

• The European Investment Bank is providing €60 million to BRAC Bank to support climate action and environmental sustainability investments by companies in Bangladesh.
• The financing will help local businesses - particularly in the ready-made garment and textile sectors - to invest in circular economy, renewable energy, energy efficiency and waste management solutions.
• The project will support green and circular investments across Bangladesh's garment and textile value chains, a sector that accounts for around 85% of the country's exports.

EIB Global, the development arm of the European Investment Bank, has announced a €60 million financing agreement with BRAC Bank PLC in Bangladesh, marking the longest-tenor funding ever extended by a development finance institution to a commercial bank in Bangladesh. The 12-year facility comprises a €40 million microfinance loan and a €20 million framework loan to accelerate green and circular investments by local companies.

The €40 million EIB loan is expected to support more than 2,500 small enterprises in Bangladesh. The financing will enable investments in cleaner production, resource efficiency, waste reduction, renewable energy and modern equipment, with the full amount contributing to climate action and environmental sustainability. In practical terms, supported initiatives may include solar rooftop photovoltaic systems, greener buildings, improved waste management, the replacement of inefficient refrigerators in retail shops and washing machines in laundromats, the deployment of electric two- and three-wheel vehicles, the promotion of clean cooking solutions, and improved access to safe water through rainwater harvesting and household water filters.

The €20 million framework loan will also finance projects to accelerate the transition to sustainable and circular production in the Bangladeshi private sector across the ready-made garment, textile and other export focused sectors.

Bangladesh is one of the world's leading apparel producers and the second largest source of apparel for the European Union (EU). As EU buyers and legislation increasingly require more sustainable and transparent supply chains, access to long-term green finance is becoming essential for local suppliers to remain competitive and continue supplying European markets. The loan will help companies to meet rising sustainability standards and strengthen the trade between Bangladesh and the EU.

"Bangladesh's garment and textile sectors are central to the country's economy and deeply connected to European markets," said EIB Vice-President Nicola Beer. "By partnering with BRAC Bank, a globally recognised institution for financial inclusion, EIB Global is helping businesses modernise production, use resources more efficiently and meet higher sustainability standards. This is good for climate action, good for trade and good for the long-term resilience of Bangladesh's private sector."

"BRAC Bank has long supported entrepreneurs and businesses that are central to Bangladesh's growth story," said Managing Director and CEO of BRAC Bank, Tareq Refat Ullah Khan. "This partnership with the European Investment Bank marks an important step in accelerating green and circular investments across the country's industrial value chains. The financing will help businesses modernise operations, improve resource efficiency and meet evolving global sustainability standards, strengthening Bangladesh's competitiveness in international markets while supporting a more resilient and sustainable economy."

"This partnership is a strong example of Global Gateway in action, bringing European investment together with Bangladeshi entrepreneurship to support a greener, more competitive and more resilient economy," said Ambassador and Head of Delegation of the European Union to Bangladesh, H.E. Michael Miller. "It will enable businesses in the textile and garment value chains to invest in cleaner technologies, circular solutions and energy efficiency, strengthening sustainable trade between Bangladesh and the European Union while supporting climate action, decent work and long-term growth."

Background information

The EIB Group

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union.

Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe's markets for venture debt, venture capital, guarantees and securitisations.

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.

EIB Global

EIB Global is the EIB Group's specialised arm devoted to increasing the impact of international win-win partnerships and development finance, and a key partner of Team Europe and the Global Gateway strategy. EIB Global brings the EIB Group closer to people, companies and institutions through some 30 offices across the world outside the EU.

Global Gateway

Global Gateway is the EU's strategy to promote smart, clean, and secure connections in the digital, energy, and transport sectors, while strengthening health, education, and research systems worldwide. It's the EU contribution to narrowing the global investment gap accompanying the social and just green and digital transitions beyond European borders and boosting competitiveness and security of global supply chains.

Global Gateway is a way to connect Europe and partners across the globe, based on trust, sustainability and mutual interest. It provides investments for transformative, large-scale projects, while offering a respectful and qualitative partnership to our partner countries in line with the Sustainable Development Goals and the Paris Agreement.

By 2027, Global Gateway aims to mobilise up to €400 billion in investments worldwide by pooling the resources of Team Europe, which brings together the EU, its Member States, financial and development institutions, and European businesses. All Global Gateway projects are designed together with our partners on how best they can benefit from our investment offer to ensure that the results improve their necessary infrastructure and connectivity.

BRAC Bank PLC

BRAC Bank PLC is one of Bangladesh's leading private commercial banks, offering a comprehensive range of corporate, SME, retail, and digital banking services. Since its establishment in 2001, the bank has championed financial inclusion through its pioneering collateral-free SME lending model while upholding a strong commitment to governance, transparency, and values-based banking.

Today, BRAC Bank is among Bangladesh's largest listed banks by market capitalisation and has one of the highest levels of international shareholding in the country's banking sector. The bank is rated B+ by S&P Global Ratings and B2 by Moody's Ratings, is the only Bangladeshi member of the Global Alliance for Banking on Values (GABV) and ranks highest among Bangladeshi banks in Bloomberg ESG scoring. This transaction was successfully arranged by Inval Capital, a leading advisory firm based in India.