UK’s CDC lends Prime Bank $30 million

CDC Group (CDC), UK’s development finance institution and impact investor, has committed a $30 million trade finance loan to Prime Bank.

The loan will enhance the bank's ability to meet local corporates’ US dollar funding needs, bolstering necessary import and export activities, and supporting the continued growth of Bangladesh’s economy, said the bank in a press release.

“We are thrilled to be backing a key Bangladeshi financial institution that will help accelerate capital support to local communities, boost businesses and economic opportunities,” said M Rehan Rashid, country director for Bangladesh of CDC.

Moreover, CDC’s loan facility will provide Prime Bank with a stable source of much-needed trade finance funding.

“This collaboration shall enable Prime Bank to address the need of corporate and SME clients in the post-covid business environment. Furthermore, the alliance shall provide liquidity support to our international trade business and help us to migrate some of the best international practices to strengthen our corporate governance,” said Hassan O Rashid, managing director and CEO of Prime Bank.

Besides, this liquidity will enable the bank to extend more foreign currency trade credit at longer tenors to local businesses, and the facility is expected to generate up to US$60 million of additional trade every year across key economic sectors such as manufacturing, ready-made garments, food, and agriculture.

HE Robert Chatterton Dickson, British High Commissioner to Bangladesh, said, “This new trade finance loan by the UK’s bilateral investment arm, CDC, will act as a stimulus to the growth of Bangladesh’s GDP by providing much-needed support to key economic sectors.”

“It underlines the UK’s commitment to accelerating economic recovery in Bangladesh by improving private sector access to finance,” he added.