BB launches Tk 1,000 crore refinance fund for green industries, factory buildings

Bangladesh Bank today launched a Tk 1,000 crore revolving refinance fund to accelerate investment in green industries and environmentally sustainable factory buildings, aiming to support the country's climate and sustainable development goals.

Under the scheme, banks and financial institutions will be able to access refinance support at an interest rate of 2 percent and lend to eligible borrowers at a maximum rate of 5 percent.

The refinance tenure will range from three to 10 years, with a grace period of up to one year.

The facility will finance the establishment of green industries and green factory buildings certified or pre-certified under internationally recognised standards such as LEED, EDGE, BEEER and GreenARCH.

A single borrower can receive refinance support of up to Tk 100 crore, while projects must maintain a minimum debt-to-equity ratio of 70:30. Defaulted borrowers will be ineligible for the facility.

Participating banks and finance companies must comply with Bangladesh Bank's guidelines on sustainable finance, environmental and social risk management, climate risk management, and disclosure requirements.

Bangladesh Bank said the fund, sourced from its own resources, will take immediate effect and is intended to promote environmentally responsible industrialisation and strengthen green financing in the country's financial sector.