EIB Global, the development arm of the European Investment Bank (EIB), has announced a €60 million financing agreement with BRAC Bank PLC in Bangladesh to accelerate climate action and environmental sustainability investments by local companies, according to a press release. The agreement marks the longest-tenor funding ever extended by a development finance institution to a commercial bank in Bangladesh. The 12-year facility combines a €40 million microfinance loan and a €20 million framework loan. It targets green and circular investments across Bangladesh’s private sector. The initiative particularly focuses on the ready-made garment and textile industries.
Bangladesh is one of the world’s leading apparel producers and the second largest source of apparel for the European Union (EU). The garment and textile sector accounts for around 85% of the country’s exports. As EU buyers and legislation increasingly require more sustainable and transparent supply chains, access to long-term green finance is becoming essential for local suppliers. This financing is expected to help companies remain competitive and continue supplying European markets. It also aims to strengthen trade ties between Bangladesh and the EU.
The €40 million EIB loan is expected to support more than 2,500 small enterprises in Bangladesh. The full amount will contribute to climate action and environmental sustainability. Supported initiatives may include solar rooftop photovoltaic systems, greener buildings, and improved waste management. Other examples include the replacement of inefficient refrigerators in retail shops, washing machines in laundromats, and the deployment of electric two- and three-wheel vehicles. The financing will also promote clean cooking solutions and improved access to safe water through rainwater harvesting and household water filters.
The €20 million framework loan will finance projects to accelerate the transition to sustainable and circular production in the Bangladeshi private sector across the ready-made garment, textile and other export-focused sectors.
EIB Vice-President Nicola Beer said, “Bangladesh’s garment and textile sectors are central to the country’s economy and deeply connected to European markets.”
She added that by partnering with BRAC Bank, EIB Global is helping businesses modernize production and meet higher sustainability standards. Managing Director and CEO of BRAC Bank, Tareq Refat Ullah Khan, described the partnership as an important step in accelerating green and circular investments across the country’s industrial value chains. He noted it will help businesses improve resource efficiency and meet evolving global sustainability standards.
Ambassador and Head of Delegation of the European Union to Bangladesh, H.E. Michael Miller, called the partnership “a strong example of Global Gateway in action.” He said it brings European investment together with Bangladeshi entrepreneurship to support a greener, more competitive and more resilient economy. The financing will enable businesses in textile and garment value chains to invest in cleaner technologies, circular solutions and energy efficiency. It is expected to strengthen sustainable trade between Bangladesh and the EU while supporting climate action, decent work and long-term growth. The transaction was arranged by Inval Capital, a leading advisory firm based in India.
