The government of Bangladesh has signed a loan agreement of $400 million as budget support with the Asian Infrastructure Investment Bank (AIIB) to implement the "Climate Resilient Inclusive Development Programme-Subprogram 2".
Mirana Mahrukh, additional secretary of Economic Relations Division (ERD)under the Ministry of Finance and Rajat Misra, acting chief investment officer of Public Sector (Region 1) and Financial Institutions and Funds (Global) Clients and Director General of Public Sector Clients Department Region 1 signed the loan agreement today on behalf of Bangladesh and the AIIB respectively, said an ERD press release here.
This Programme has been taken by the Finance Division. The scope of the Programme 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.
The loan,
which will be received in standard terms and conditions of the AIIB, has a maturity period of 35 years, including a five-year grace period.
It carries an interest rate based on the Secured Overnight Financing Rate (SOFR) plus a variable spread, with a front-end fee of 0.25 percent.
