The interim government has signed a $100 million loan agreement with the Asian Development Bank (ADB) to strengthen the Bangladesh Infrastructure Finance Fund Limited Project. 

The project, with an implementation period from 2024 to 2029, aims to catalyse commercial financing for public-private partnership (PPP) projects in infrastructure development. 

The finance division will act as the executing agency of the project while Bangladesh Infrastructure Finance Fund Limited (BIFFL) will serve as the implementing agency, according to a press release. 

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The loan, which is repayable over 25 years with a 5-year grace period, has an interest rate of the Secured Overnight Financing Rate (SOFR) plus 0.50 percent, a maturity premium of 0.10 percent, and a commitment charge of 0.15 percent.

The SOFR is a broad measure of the cost of borrowing cash overnight collateralised by treasury securities.

Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, country director of the ADB's Bangladesh Resident Mission, signed an agreement in this regard today. 

ADB has been a key multilateral development partner for Bangladesh since 1973, providing over $31.89 billion in loans and $571.2 million in grants, focusing on sectors such as power, energy, local government, transport, education, and health.