City Bank gets $75 million from AIIB, NDB

The Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB), two global multilateral development banks, will provide City Bank PLC $75 million in long-term financing for private sector projects with a strong focus on renewable energy and sustainable infrastructure.

The organisations recently signed an agreement to that end, reads a press statement by the bank. Under the arrangement, the AIIB will provide $50 million while the NDB will extend $25 million.

This initiative marks the AIIB's first on-lending facility to any private bank or organisation in Bangladesh without a sovereign guarantee.

The financing is expected to help reduce Bangladesh's infrastructure financing gap and promote investments in energy, energy efficiency, e-mobility, and digital infrastructure.

Mashrur Arefin, managing director and CEO of City Bank, and Gregory Liu, director general for financial institutions and fund clients, global at the AIIB, initially signed the deal in Beijing recently. Later, Roman Serov, vice-president and chief operating officer of the NDB, and Bin Hun, director general, signed the long-term financing agreement with City Bank.

Commenting on the partnership, Arefin said, "This long-term financing partnership with the AIIB and the NDB not only demonstrates their confidence in City Bank but also empowers us to accelerate investments in renewable energy and infrastructure projects, critical areas for the country's sustainable development goals."

The loan to one of Bangladesh's leading private commercial banks will help bridge the country's infrastructure financing gap by mobilising private sector capital, enabling longer-term infrastructure loans, and supporting projects across key sectors, according to the statement.

The facility also underscores the foreign lenders' commitment to building resilient and sustainable infrastructure ecosystems across member economies.

Mesbaul Asif Siddiqui, deputy managing director and head of wholesale banking at City Bank, was also present, along with other senior officials from the participating organisations.