Citibank Provides BDT 1.23 Billion Financing for BRAC
Innovative Backstopped Facility Allows BRAC to Leverage on Citibank’s Strength
Bangladesh – BRAC, the world’s largest national NGO with over five million borrowers, has entered into a backstopped facility with Citibank, N.A. Bangladesh and its partner banks to avail financing for rural development specially supporting its post-flood rehabilitation programs. The BDT 1.23 billion backstopped facility, coordinated by Citibank, is the first such facility ever done for a microfinance institution globally.
“This solution underlines Citi’s commitment towards supporting the cause of microfinance globally and the post-flood rehabilitation program in Bangladesh, and it also marks BRAC’s openness towards innovative financial solutions to channel the benefits of modern finance to its microborrowers,” said Fazle Hasan Abed, Chairperson, BRAC.
Citibank directly provided BDT 710 million, and the local banks Eastern Bank Limited, The City Bank Limited, Trust Bank Limited and United Commercial Bank Limited have jointly extended the remaining BDT 520 million whereby Citibank is the backstop provider.
“We will expand and broaden access to finance for microfinance institutions such as BRAC not all on our own, but through alliance partners, including other commercial banks, investors and large commercial networks working to provide services to the majority in our communities,” said Sanjay Nayar, CEO India and Area Head, Citi South Asia.
Robert Annibale, Global Director, Citi Microfinance added, “We are glad to support BRAC in its post-flood rehabilitation efforts in Bangladesh and this will mark the advancement of the microfinance sector towards inclusion into the mainstream financial market.”
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