Dhaka, April 27: The Asian Development Bank (ADB) and the City Bank Limited today signed a loan agreement for $5 million to support import and export financing for Bangladeshi businesses. Under the agreement, ADB’s Trade Finance Program (TFP) will provide trade loans to the City Bank to on-lend to local firms.
“We are pleased to be growing the partnership with the City Bank and to support more trade, which is directly linked to job creation and economic growth,” said Edward Faber, TFP Relationship Manager for Bangladesh. “With ADB’s backing, the City Bank will be able to increase its financial support to local companies, including small and medium-sized businesses.”
The City Bank became a partner bank in ADB’s TFP in early 2016 under the TFP’s guarantee product. Since that time, ADB and the City Bank have worked on 8 transactions together valued at $15 million. The revolving credit facility signed today is an expansion of the ADB TFP-the City Bank relationship, which will provide even more support to companies operating in Bangladesh.
“The City Bank signed the Trade Finance Guarantee Facility Agreement last year and our relationship with ADB has been stronger since then. In the future, we hope to explore more opportunities for cooperation between the two institutions,” said the City Bank Managing Director and CEO Sohail R. K. Hussain.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.