Dhaka, Bangladesh, June 10, 2012—IFC,
a member of the World Bank Group, is helping Bangladesh’s Eastern Bank
develop the first Sustainable Energy Finance loan product in the country
to help companies implement energy-saving measures, crucial in an energy-poor
country, and boosting the competitiveness of private enterprises who take
out such loans.
Eastern Bank developed EBL Green Credit with assistance from the SouthAsia
Enterprise Development Facility, managed by IFC in partnership with the
UK Department for International Development and the Norwegian Agency for
Fakhrul Alam, Deputy Managing Director of Eastern Bank, said, the bank
aims to finance $20 million in sustainable energy finance projects over
the next five years,
and avoid 200,000 tons of carbon emission in the process. Even though Bangladesh
formulated a renewable energy policy in 2008,
incentives to encourage private sector investments have been lacking.
Dr. Atiur Rahman, Governor of Bangladesh Bank, said, “Bangladesh Bank
is firmly committed to contribute significantly as a regulatory authority
to the Sustainable Energy Finance agenda in Bangladesh.” Dr Rahman spoke
at the EBL Green Credit launching ceremony to participating industry experts,
lenders, representatives from financial institutions,
and multilateral donors.
Dr. Tawfiq-e-Elahi Chowdhury BB, Energy Adviser to the Prime Minister,
“Sustainable development, including energy for all, is the strategy to
go forward. The Green Credit product should help promote and finance the
energy mix stipulated in the Energy Policy of the government of Bangladesh.”
Kyle F. Kelhofer, IFC Country Manager in Bangladesh, said, “This pioneering
initiative is an important milestone in Bangladesh's continuing efforts
to promote international best practices in climate change financing."
The power sector in Bangladesh relies heavily on natural gas.
An acute shortfall in gas supply threatens to stall industrialization as
well as the government’s plan to electrify the entire country by 2020,
highlighting the need for private sector investments in sustainable energy
IFC’s Sustainable Energy Finance program aims to lower spending on costly
energy imports, promote energy security, and improve the environment. Significantly,
in many cases operating savings alone can repay energy-efficiency loans.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,