The Belgian Investment Company for Developing Countries (BIO) has extended a $15 million loan to Mutual Trust Bank (MTB) to enhance its portfolio dedicated to micro, small, and medium enterprises (MSMEs) and sustainable financing initiatives.
The five-year loan includes a one-year grace period and will carry an interest rate of the Secured Overnight Financing Rate (SOFR) plus an additional margin below 3 percent, effectively totaling approximately 6 percent.
Frédéric Vereecke, an investment officer at BIO, highlighted the significance of the collaboration, stating, “This collaboration is a remarkable journey that goes beyond financial transactions. Together, we are creating a partnership that fosters positive transformation.”
According to a statement on BIO’s website, the loan aims to deliver numerous benefits for Bangladesh.
The comprehensive approach taken in this partnership also emphasizes financial inclusion, ensuring that underserved populations can integrate into the formal economy.
BIO is providing technical assistance to MTB to address gender equality within its operations and lending practices. This effort aims to ensure that inclusive financial services benefit all segments of the Bangladeshi economy.
TSW Capital Services Private, a prominent financial advisory firm headquartered in Mumbai, played a significant role as the transaction advisor for this funding.
