GCPF signs USD 20m green financing facility with Southeast Bank Limited, Bangladesh
Luxembourg, 30 June 2015 – GCPF has signed a facility agreement with Southeast Bank Limited (SEBL) in Bangladesh for a USD 20 million green financing facility with a tenor of eight years. SEBL’s diversified pipeline portfolio of renewable energy and energy efficiency projects is expected to generate significant social and environmental impact.
As one of the leading private sector banks in Bangladesh, SEBL is well-positioned to on-lend GCPF financing. SEBL has a diversified pipeline portfolio that is in line with GCPF’s requirements: renewable energy and energy efficiency projects to households, enterprises, power producers and equipment manufacturers both directly and through partner organizations. Cumulatively, these will have significant social and environmental impact. In line with other private commercial banks, SEBL is also guided by the Social and Environmental Management System framework of The Central Bank of Bangladesh.
This is the second GCPF transaction in Bangladesh within the past year, following the agreement signed with The City Bank in July 2014. Bangladesh is one of the most vulnerable countries to climate change and is also severely energy deficient. Growth in demand for energy continues to outstrip generation. Only about half the population has access to grid electricity and the country has the lowest per capita energy consumption in South Asia. However, domestic resources, solutions and skills for bridging this deficit are available. In this context, the Central Bank of Bangladesh appreciated that GCPF is providing financing for a priority area.
Shahid Hossain, CEO, Southeast Bank, commented on the agreement, “Economic development and environmental issues are very closely related and it is really challenging to keep balance between these two for an emerging economy like Bangladesh. GCPF facility provides SEBL the possibility to expand its business in sustainable energy sector. It will increase the availability of funding for Bangladeshi Green enterprises, thereby supporting the protection of Environment of Bangladesh. We hope this partnership will be a very rewarding experience for us.”
Claudia Arce, chairperson of the GCPF Board, explained, “By teaming up with local financial institutions such as Southeast Bank, GCPF can ensure that it meets its objective of sustainably promoting the development and use of clean energy in the world’s growth markets. GCPFs financing facilities allow our partners to tap into the potential of ‘green’ lending. As energy prices rise and the global demand for energy continues to grow, companies are increasingly seeking financing for investments in these areas.”
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