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IFC Trains Bankers on Sustainable Energy Finance


In Dhaka:
Shazia Ahmed
Phone: 0171-411-0580
E-mail: SAhmed15@ifc.org


Dhaka, Bangladesh, November 24, 2009—IFC, a member of the World Bank Group, is helping train financial institutions on how to appraise sustainable energy finance loans to help them increase their investments in green businesses.

The SouthAsia Enterprise Development Facility hosted training this week for 35 senior bankers, covering such topics as how to structure sustainable energy finance loans, how to develop such loan products, what sort of risks to look out for, and opportunities for green investments, including energy efficient boilers, steamers, and compact fluorescent lamps.

“We are excited about moving into the area of sustainable energy finance, and expect this training will equip our staff to appraise renewable energy and energy efficiency loan proposals proactively,” said Ali Reza Iftekhar, Managing Director and CEO, Eastern Bank Ltd.  “IFC has brought technical expertise and global experience to our financial sector.”  

This was the second round of training for the bankers, who received instruction earlier this year on the basics of sustainable energy finance, climate change, and energy efficiency.  More training will be held next year on how to implement environmental risk management guidelines in banks.  IFC is working with the Bangladesh Central Bank to develop an Environmental Risk Management Guideline, which is expected to be launched by mid- 2010.

“This training was a critical step towards our overall objective of creating opportunities for financial institutions to build a sustainable energy finance portfolio that will address climate change issues and reduce pollution in Bangladesh, while increasing bank profits,” said Mohammad Rehan Rashid, Senior Financial Markets Specialist, IFC.
 
The SouthAsia Enterprise Development Facility, managed by IFC in partnership with the United Kingdom’s Department for International Development and the Norwegian Agency for Development Cooperation, is working with the Bangladesh Central Bank and private financial institutions to provide funds for green business investments.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by increasing financing for renewable energy or energy efficient projects in Bangladesh.

About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.