Citi Arranges Syndicated Agricultural Term Loan For MFI In Bangladesh

November 17, 2009 11:01 a.m. EST

Dhaka, Bangladesh (AHN) - Citibank, N.A. Bangladesh has arranged the country's first ever syndicated agricultural term financing facility of $21.7 million (BDT 1.50 billion) for BURO Bangladesh, a leading microfinance institution (MFI).

Bangladesh Bank, the country's central bank, Governor Atiur Rahman attended as the Chief Guest at the formal closing ceremony of this fund raising program held in the capital, Dhaka on Tuesday.

The 5-year local currency facility has been provided to the MFI to facilitate its expansion of micro-lending to the agriculture sector, a joint press statement said in Dhaka.

The central bank chief mentioned that the linkage, between commercial banking and SMEs small and medium enterprises in the agricultural sector, is very important to sustain the development of economy and ensuring food security of the large population of the country.

Commenting on this project, Executive Director of BURO Zakir Hossain said: "Buro Bangladesh is focused on ensuring food security through microfinance institutions and we appreciate Citibank and the participating banks for their contribution."

Managing Director and Citi Country Officer - Bangladesh Mamun Rashid further added, "At Citi, we are much honored to arrange this syndicated agricultural loan which will provide assistance to a million, and this is yet another milestone in our partnership with the country's microfinance sector."

Besides Citi being the arranger, other participating lenders include Agrani Bank Limited, Citibank, N.A., Dutch-Bangla Bank Limited, Eastern Bank Limited, Janata Bank Limited, Mutual Trust Bank Limited, Prime Bank Limited, Pubali Bank Limited, Sonali Bank Limited, Southeast Bank Limited, Standard Bank Limited, The City Bank Limited and United Commercial Bank Limited, according to the statement.