City Bank Secures $75M Loan for Renewable Energy Projects
Citibank has secured a significant $75 million long-term loan from the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB). The loan, the first of its kind without a sovereign guarantee, was signed by Mashrur Arefin, Citibank's managing director and CEO, and representatives from the international lenders.
The loan will primarily focus on renewable energy and sustainable infrastructure projects, accelerating investments in these crucial areas. Mashrur Arefin expressed his enthusiasm, stating that this financing will enable Citibank to support such projects at a lower cost than direct foreign borrowing.
Citibank's strong financial position and sustainable banking rating attracted global lenders AIIB and NDB. The AIIB contributed $50 million, while the NDB provided $25 million. The loan has a five-year tenure, aiming to bridge Bangladesh's infrastructure financing gap.
This landmark loan not only strengthens Citibank's balance sheet but also contributes to Bangladesh's foreign exchange reserves. It paves the way for future private sector loans from AIIB and NDB, potentially attracting more international investment in Bangladesh's renewable energy and infrastructure sectors.
