The Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) will lend a combined USD75 million to City Bank PLC (CBL), a leading private commercial bank in Bangladesh, to boost sustainable infrastructure investments in the country.
Initiated and structured by AIIB, which is lending USD50 million, alongside NDB’s parallel USD25 million, the financing will enable CBL to tackle critical infrastructure development challenges. It is expected to catalyze sustainable investments across renewable energy, energy efficiency, e-mobility and digital infrastructure, while providing longer-tenor funding – an essential catalyst for large-scale and resilient infrastructure development to bridge the country’s infrastructure financing gap.
The financing package will provide mid- to long-term funding for private-sector projects, with a focus on renewable energy, energy efficiency, e-mobility and digital infrastructure.
The agreement was signed by Gregory Liu, Director General of the Financial Institutions and Funds Clients, Global, AIIB; Roman Serov, Vice President and Chief Operating Officer of NDB; and Mashrur Arefin, Managing Director and Chief Executive Officer of CBL.
This initiative marks the first on-lending facility by AIIB and NDB to a private bank in Bangladesh, aimed at strengthening the private sector’s capacity to finance sustainable infrastructure and mobilizing longer-term private capital across key sectors.
“We are proud to contribute to Bangladesh’s sustainable development through this cornerstone partnership with City Bank,” Liu said. “Our financing not only expands support for renewable energy and sustainable infrastructure but also exemplifies AIIB’s commitment to building strategic partnerships with leading financial institutions, including mobilizing co-financiers such as NDB, fostering financial innovation and catalyzing private sector capital in Bangladesh.”
“We are pleased to join hands with AIIB and City Bank in advancing Bangladesh’s sustainable infrastructure agenda,” Serov said. “This financing reflects NDB’s commitment to supporting our members in achieving their development goals through innovative partnerships and impactful investments. Together, we aim to catalyze private sector participation, foster green and resilient growth and contribute to Bangladesh’s long-term prosperity.”
This investment reinforces AIIB’s and NDB’s ongoing efforts to build resilient and sustainable infrastructure ecosystems across their members through partnerships with the private sector.
“This partnership with AIIB and NDB not only marks a breakthrough for City Bank but also demonstrates the confidence of global development partners in the capacity of Bangladesh’s private sector to drive sustainable growth,” Arefin said. “This long-term financing will empower us to accelerate investments in renewable infrastructure, a critical area for the country’s future.”
AIIB also facilitated a USD500,000 grant from the Multilateral Cooperation Center for Development Finance to help strengthen CBL’s environmental and social management systems, supporting its infrastructure financing capabilities and promoting international best practices.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About New Development Bank
The New Development Bank was established by Brazil, Russia, India, China, and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. NDB has been rated AA+ with a stable outlook by Standard and Poor’s Global Ratings, AA with a stable outlook by Fitch Ratings Inc., and AAA with a stable outlook by Japan Credit Rating Agency, Ltd. For more information, visit www.ndb.int.
About City Bank PLC
Founded in 1983, City Bank PLC is one of the leading private commercial banks in Bangladesh, offering a full range of corporate, retail, SME, microfinance, trade finance, and digital banking services. CBL is AAA (long-term) and ST-1 (short-term) rated by CRAB and B2 rated by Moody’s for its strong financial position and sound management. CBL has been ranked by Bangladesh Bank as the No.1 Sustainable Bank for its 2024 Sustainability Rating, reflecting its strong commitment to responsible growth and innovation. International Finance Corporation is the single largest shareholder of the bank. CBL is also the sole territorial franchisee of American Express in Bangladesh. For more information, visit www.citybankplc.com.
