BRAC Bank secures $50M in IFC facility to expand finance for women-led and farm MSMEs
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BRAC Bank has secured a $50 million senior unsecured Working Capital Solutions (WCS) facility from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to expand access to finance primarily for micro, small and medium enterprises (MSMEs) in Bangladesh, with a particular focus on women-led businesses and businesses operating in the agricultural sector.
This marks the fourth consecutive financing facility extended by IFC to BRAC Bank. The facility reinforces the longstanding partnership between IFC and BRAC Bank to advance financial inclusion and strengthen Bangladesh's private sector. It will provide the bank with medium-term U.S. dollar funding, strengthening its capacity to support businesses engaged in international trade, the import of capital machinery and raw materials, and other foreign currency-denominated business activities.
Structured as a one-year facility with two annual renewal options, the financing has a maximum tenure of three years. At least 50% of the proceeds or equivalent in local currency facility will be allocated to women-owned MSMEs, while a minimum of 25% will support agricultural MSMEs, helping address critical financing gaps in two sectors that are central to inclusive economic growth and job creation. Beyond expanding financial inclusion, the facility will help improve access to foreign currency funding for business enterprises.
The investment is being made under the SME Envelope of IFC's MSME Finance Platform which provides financing to financial institutions serving underserved businesses in emerging markets.
As Bangladesh's pioneer and leading SME-focused bank, BRAC Bank has played a transformative role in expanding access to finance for entrepreneurs. Through its nationwide distribution network and customer-centric banking model, the bank continues to strengthen the country's MSME ecosystem by providing sustainable and inclusive financial solutions while supporting businesses’ integration into regional and global value chains through tailored trade and foreign currency financing.
Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank, said: "This investment from IFC reflects its confidence in BRAC Bank's financial strength, governance standards, and longstanding leadership in MSME banking. The facility will strengthen our capacity to finance businesses that drive Bangladesh's economy - particularly women-led enterprises and agricultural MSMEs - while expanding access to foreign currency financing for entrepreneurs engaged in international trade and productive investment."
Wilfried Tamegnon, IFC’s Acting Country Manager for Bangladesh and Nepal, said, “MSMEs are Bangladesh’s biggest engine of jobs. By expanding finance for women-led and agricultural enterprises, this facility will help more firms invest, scale up, and create quality employment across the country.”
“IFC is proud to support BRAC Bank in accelerating this growth and strengthening private sector-led job creation,” he added.
The transaction reinforces BRAC Bank's role as a leading partner for international development finance institutions and underscores its commitment to mobilizing global capital in support of Bangladesh's private sector growth, trade expansion, and sustainable economic development.
