WCS BRAC III (IFC-39706)

Countries
  • Bangladesh
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 20, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
BRAC Bank Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 5, 2018

Disclosed by Bank Nov 17, 2017


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Project Description

The project consists of a short-term loan (Working Capital Solutions, WCS) for up to $40 million to BRAC Bank Ltd. (the Bank or BRAC Bank) to support the foreign currency needs of small and medium enterprises (SMEs) in Bangladesh. The financing provided is a fit with the World Bank and IFC strategy of promoting economic growth by providing access to finance to underserved market segments and promoting international trade, thereby leading to improved competitiveness, job retention and creation.

The Bank was established in 2001 to assist the development of rural SMEs whose financial needs were not met by the conventional banking channels and has total assets of $3.5 billion as of September 30, 2017.


People Affected By This Project

1. Improved Access to Credit: The Project will increase access to finance for credit-constrained, export-oriented companies and SMEs to meet working capital requirements. It will also expand financial intermediation. IFC's investment will further support business growth and spur job creation in the SME and export-oriented segments.

2. Boost Export Competitiveness: IFC's investment will help to accelerate economic growth in Bangladesh by providing SMEs and exporters with trade finance solutions to their working capital requirements, and help them pay for imports needed in the value chain.

Investment Description
  • International Finance Corporation (IFC)
Private Actors
  • BRAC Bank Limited -- Financial Intermediary

The Bank was established in 2001   to assist the development of rural SMEs whose financial needs were not met by the conventional banking channels and has total assets of $3.5 billion as of September 30, 2017. 

Contact Information

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/