The City Bank, a major private sector bank in Bangladesh, has secured a $75 million loan from two international development banks: the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB). This financing is earmarked for investment in Bangladesh’s private sector and infrastructure development, including projects related to power, energy efficiency, e-mobility, and digital activities.
Loan Details and Allocation
Of the total $75 million, AIIB will contribute $50 million (50 million) and NDB will provide $25 million (25 million). The City Bank announced the news on Thursday (October 2), following the execution of the agreement with the two international development banks.
Agreement Signing Ceremony
The agreement was signed by:
- Masrur Arefin, Managing Director and CEO of The City Bank.
- Gregory Liu, Director General, Financial Institutions and Funds Clients, Global, AIIB.
- Roman Serov, Vice President and COO, NDB.
- Bin Han, Director General, NDB.
Also present at the signing was Mesbaul Asif Siddiqui, Deputy Managing Director and Head of Wholesale Banking at The City Bank.
Significance of the Partnership
This marks AIIB’s first non-sovereign guaranteed on-lending facility with any private bank or institution in Bangladesh. For The City Bank, this loan is expected to accelerate capital investment in the private sector, create opportunities for long-term infrastructure financing, and support the implementation of projects in key sectors.
Masrur Arefin, Managing Director and CEO of The City Bank, commented on the development, stating that this long-term financing partnership with AIIB and NDB is an expression of their confidence in The City Bank. He added that it will enable the bank to accelerate investments in the renewable energy and infrastructure sectors, which are crucial for achieving the country’s Sustainable Development Goals (SDGs).
This financing collaboration highlights the ongoing efforts of AIIB and NDB to build a sustainable and stable infrastructure ecosystem among their member states, achieved through their partnership with The City Bank.
