BIO grants a USD 15 million loan to Mutual Trust Bank in Bangladesh
BIO Supports MSME Growth and Sustainability in Bangladesh with USD 15 Million Loan to Mutual Trust Bank
13-06-2024
![BIO grants a USD 15 million loan to Mutual Trust Bank in Bangladesh](/files/_660x282_crop_center-center_82_line/MTB.jpeg)
The Belgian Investment Company for Developing Countries (BIO) has provided a USD 15 M loan facility to Mutual Trust Bank PLC (MTB). This loan facility will directly support the expansion of MTB's portfolio dedicated to Micro, Small and Medium Enterprises (MSMEs) and sustainable financing initiatives.
Marking a milestone
This transaction represents BIO's first foreign currency transaction in Bangladesh. TSW Capital Services Private Ltd., a leading financial advisory firm headquartered in Mumbai, India, played a crucial role as transaction advisor for this funding.
Strategic partnership for growth and impact
The USD 15 million financing strengthens the strategic partnership between BIO and MTB. Both organizations share a commitment to creating measurable positive impacts on Bangladesh's economy and environment.
![BIO grants a USD 15 million loan to Mutual Trust Bank in Bangladesh](/files/_660x660_crop_center-center_82_line/Syed-Rahman.webp)
We are delighted to partner with BIO as we continue to empower businesses and fuel growth in Bangladesh. This financing represents a landmark for MTB's engagement with foreign development finance institutions (DFIs) and provides much-needed USD liquidity in a challenging foreign exchange landscape
Syed Mahbubur Rahman, Managing Director & CEO, Mutual Trust Bank PLC
Benefits
The project delivers a multitude of benefits for Bangladesh. By providing increased access to finance for MSMEs, this initiative will foster business growth and create new job opportunities. Furthermore, the promotion of sustainable financing practices will equip businesses with the tools they need to mitigate climate risks. This comprehensive approach also promotes financial inclusion, ensuring that underserved populations can participate in the formal economy. Ultimately, this partnership between BIO and MTB contributes to the advancement of several UN Sustainable Development Goals (SDGs) in Bangladesh, fostering a more prosperous and sustainable future for the country.
Beyond financing: adressing gender equality
In addition to direct financial support, BIO offers technical assistance to MTB to address gender equality within the bank's operations and lending practices. This comprehensive approach aims to ensure inclusive financial services that benefit all segments of the Bangladeshi economy.
![BIO grants a USD 15 million loan to Mutual Trust Bank in Bangladesh](/files/Staff/_660x660_crop_center-center_82_line/Frédéric-Vereecke-WEN02271.jpg)
This collaboration is a remarkable journey that goes beyond financial transactions. Together, we are creating a partnership that fosters positive transformation.
Frédéric Vereecke, Investment Officer at BIO
About Mutual Trust Bank PLC
Established in 1999, MTB is among the country’s top banks, and has a pan-Bangladesh presence managing a network of 120 branches & 39 Sub branches, 200 Agent Banking Centers and 08 Air Lounges across the country.
About TSW Capital Services Private Ltd.
TSW Capital Services (P) Ltd. (TCSPL) is a financial advisor based in India established to provide advisory services to emerging Asian & African companies. The firm has helped its clients raise more than USD 500 M of capital across both debt and equity from international financial institutions.
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