Bangladesh secures $400m loan from AIIB for climate action
The loan will be received in standard terms and conditions of AIIB
Bangladesh and the Asian Infrastructure Investment Bank (AIIB) signed a loan agreement worth $400 million (approximately 62,773 lakh Japanese Yen) as budget support to implement the "Climate-Resilient Inclusive Development Programme (Subprogramme 1)".
Mirana Mahrukh, additional secretary of the Economic Relations Division, and Rajat Misra, acting vice president of the Public Sector Clients Department (Region 1), signed the loan agreement on 27 June on behalf of Bangladesh and the AIIB, respectively.
The loan will be received in the standard terms and conditions of AIIB. The maturity period of the loan is 25 years including a five-year grace period. The interest rate of the loan is a reference rate variable spread and the front-end fee is 0.25%.
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The Finance Division will implement the programme which includes the following reform areas: (a) creating an enabling environment for implementing climate priorities across ministries; (b) facilitation of climate adaptation priorities; and (c) accelerating climate change mitigation actions.
