Proparco has extended a 25 MUSD loan to ONE Bank, under an 80 MUSD credit line syndicated by FMO and arranged by RSA, to Empower Small Businesses and Drive Green Projects in Bangladesh
French private sector development bank Proparco has lent USD 25 million to ONE Bank, a strongly performing and robustly-growing private commercial bank in Bangladesh. This loan is primarily earmarked for the financing of green projects and small and medium-sized businesses (SME). This five-year loan was syndicated by FMO, the Dutch development bank, and arranged by RSA.
Gregory CLEMENTE, CEO of Proparco, said: “This credit line reflects the common commitment of Proparco and ONE Bank to support an inclusive and sustainable growth in Bangladesh. Our loan will be primarily dedicated to financing green projects in areas such as renewable energy, energy efficiency, waste management and recycling. Partnering with ONE Bank, which has a strong knowledge of these sectors in Bangladesh, will allow us to support many small-scale projects, fostering a sustainable economic model in the country”.
The loan syndication has been jointly arranged by FMO and RSA Advisory from Bangladesh. Other participants are Norfund (Norwegian Investment Fund for Developing Countries), OeEB (the Austrian Development Bank) and ACTIAM-FMO SME Finance Fund (a closed-end fund for mostly Dutch institutional investors).
M. Fakhrul Alam, Managing Director of ONE Bank, thanked the lenders and said: “This new partnership is yet another achievement not just in ONE Bank’s commitment to grow its balance sheet through value creating, environment-intensive entrepreneurial investments, but also in the country’s overall ambition to achieve various sustainable development goals. Environment conscious entrepreneurial development is a major driver of modern economy and a key value we share with FMO and other development finance institutions and believe in socially and environmentally sustainable and yet commercially viable business growth. This transaction enables ONE Bank to actively pursue these goals.”
Proparco is a subsidiary of AFD (French Development Agency) focused on private sector development. It has been promoting sustainable economic, social and environmental development practices for the past 40 years. Proparco provides funding and support to both businesses and financial institutions in key development sectors - infrastructure (with a specific focus on renewable energies), agribusiness, financial institutions, healthcare and education, etc. Proparco has been a partner of Bangladesh since 2013 and has committed 120 MUSD since then in the country.