Citi and IFC to Support Expansion of BRAC’s Micro Lending in Bangladesh

IFC, a member of the World Bank Group, and Citi, the leading global financial services institution have closed a US$22 million term financing to support BRAC's microlending in Bangladesh. The facility will be made available in local currency Bangladesh Taka (BDT) having a tenor of 5 years with an amortizing structure. BRAC, one of the largest microfinance institutions in the world, continues to invest in portfolio expansion. As part of BRAC's move for managing its balance sheet, this innovative structuring and exploring diversified sources of financing, especially longer tenor financing, will be beneficial to the micro-credit and small & medium enterprise segments served by BRAC.

The loan is part of a wider Citi led financing for BRAC that was mandated last year. Of the US$55 million in equivalent BDT term financing, Citi is providing US$42 million in BDT. The US$22 million IFC-Citi tranche closed recently includes a US$ 18 million partial credit guarantee from the IFC. This risk sharing partnership with IFC will enable Citibank in Bangladesh to extend additional long-term local currency funds to BRAC.