Prime Bank PLC has signed a $90 million term loan deal with the International Finance Corporation (IFC), part of the World Bank Group. This agreement is intended to strengthen export and import-focused micro, small, and medium enterprises (MSMEs) in Bangladesh.
According to a press release, this investment seeks to greatly improve financial accessibility for MSMEs, thereby stimulating economic growth and resilience throughout the nation. Bangladesh’s SME sector consists of almost 10 million enterprises, employing 24 million individuals, and plays a vital role by currently contributing 25 percent to the GDP. It is projected that this contribution will rise to 35 percent by 2030.
Despite facing obstacles such as inflation and financial limitations, these enterprises possess substantial growth potential. Efforts are currently being made to tackle the estimated $39 billion financing shortfall. IFC’s investment aims to narrow this gap by strengthening Prime Bank’s ability to provide financing to MSMEs. This initiative not only focuses on addressing immediate liquidity requirements but also supports key sectors crucial to Bangladesh’s economic structure, including those impacted by global economic changes.
Hassan O Rashid CEO of Prime Bank said, “IFC’s support underscores confidence in Prime Bank and reflects resilience in the Bangladesh economy. Our decade-long partnership with IFC has been instrumental in expanding our operations. We are grateful for IFC’s continued support. This new infusion of $90 million, targeted towards our MSME clients, will significantly grow our MSME portfolio.”
Allen Forlemu, IFC’s Regional Industry Director said, “Our investment in Prime Bank highlights our commitment to fostering job creation and economic growth in Bangladesh, particularly through empowering MSMEs, including those led by women. By enhancing financial access and strengthening the financial ecosystem, we aim to drive inclusive growth and fortify Bangladesh’s economic foundations. We anticipate that our support will not only enhance access to finance but also stimulate broader market resilience, attracting further investments in Bangladesh’s MSME landscape.”