EIB Global and BRAC Bank PLC have agreed a €60 million (~$68.4 million), 12-year financing package for Bangladesh.
The facility targets green and circular investments, including a €20 million framework loan for ready-made garment, textile and export-focused sectors.
Suppliers serving EU buyers may gain longer-term funding to upgrade cleaner production and resource efficiency.
The €40 million loan is expected to support more than 2,500 small enterprises in Bangladesh, enabling investments in cleaner production, resource efficiency, waste reduction, renewable energy and modern equipment.
Eligible initiatives may include rooftop solar photovoltaic systems, greener buildings, improved waste management, electric two-and three-wheel vehicles, clean cooking solutions, and access to safe water through rainwater harvesting and household water filters.
The €20 million framework loan will finance projects intended to accelerate sustainable and circular production in Bangladesh’s private sector, including ready-made garment, textile and other export-focused sectors, EIB said.
It added that Bangladesh is one of the world’s leading apparel producers and the second-largest source of apparel for the European Union (EU), making access to long-term green finance important as EU buyers and legislation demand more sustainable and transparent supply chains.
Nicola Beer, vice-president, EIB said: “Bangladesh’s garment and textile sectors are central to the country’s economy and deeply connected to European markets. By partnering with BRAC Bank, a globally recognised institution for financial inclusion, EIB Global is helping businesses modernise production, use resources more efficiently and meet higher sustainability standards. This is good for climate action, good for trade and good for the long-term resilience of Bangladesh’s private sector.”
For apparel exporters, textile mills and sourcing teams linked to European markets, the financing is expected to support upgrades in cleaner technologies, energy efficiency and circular solutions.
EIB Global further said the loan will help companies meet rising sustainability standards and strengthen trade between Bangladesh and the EU.
Fibre2Fashion News Desk
