Proparco lends $50M to Bangladesh's City Bank for climate, women-led SMEs
What's the deal? ProparcoDealroom has a profile for this one. Try Dealroom →, the private sector financing arm of France's Agence Française de Développement (AFD) Group, has signed a $50 million senior loan agreement with City BankDealroom has a profile for this one. Try Dealroom → PLC. The debt facility will fund climate finance, women-led businesses, and small and medium-sized enterprises (SMEs) across Bangladesh.
Why now? Bangladesh is among the countries most exposed to climate change, and access to medium- and long-term financing for SMEs remains limited. The loan is the first collaboration between Proparco and City Bank, aimed at closing that financing gap.
What's the endgame? Founded in 1983, City Bank is one of Bangladesh's leading private commercial banks. It has committed to a net-zero emissions path through the Net-Zero Banking Alliance and the United Nations Environment Programme Finance Initiative, with a sustainability strategy spanning ready-made garments, textiles, energy, steel, and pharmaceuticals.
The facility will also finance businesses meeting the 2X Challenge criteria for women's economic participation. City Bank runs its City Alo programme for women entrepreneurs; in 2024 it added more than 5,000 new women entrepreneurs to its business development initiatives.
The signal: The loan reflects growing development-finance interest in South Asian banks as channels for climate and inclusion goals. As Proparco put it, the partnership aims to foster "more inclusive and resilient growth" by expanding long-term finance for three sectors the lender sees as drivers of Bangladesh's economy.
Read more: Proparco
Image credit: Marufish
