With an investment of USD 20 million in Mutual Trust Bank (MTB), Swedfund is set to help secure long term financing for Bangladesh’s MSMEs, climate action, and marginal women entrepreneurs.
The loan will contribute to growth and job creation and the biggest share of the proceeds will be directed towards Micro, Small and Medium-sized Enterprises (MSMEs), according to a press statement.
Over a third will support climate-related financing, enabling clients to set up renewable energy projects, such as solar and biogas, and energy efficient projects, contributing to a reduction in the country’s carbon footprint.
“With this investment, we can support access to renewable energy and financial services for small and medium sized businesses, many of which are run by women, and thereby growth and more job opportunities,” said Marie Aglert, chief of investments at Swedfund.
“Our collaboration with Swedfund further strengthens MTB’s engagement with Development Finance Institutions (DFIs), highlighting our dedication to inclusive finance and sustainable development,” said Syed Mahbubur Rahman, managing director & CEO of MTB.
“In the face of global economic challenges, we are confident that this partnership will yield mutual benefits and make a meaningful contribution to Bangladesh’s economy and climate resilience by directing funds to underserved MSMEs and climate-affected communities,” he added.
MTB has a longstanding background, cooperating with DFIs, and Norwegian Norfund is currently the single biggest shareholder.
Source: The Financial Express
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