Strengthen Global: Partnerships for Enhanced Resources and Expertise

The Daily Star (TDS):  Prime Bank has been recognised as a top performer in the 'Sustainability Rating 2023' by Bangladesh Bank. What are the most innovative and impactful sustainable financing products or strategies that contributed to this achievement?

Md. Ziaur Rahman (MZR): Our focus is on creating a future where sustainable practices are the norm, not the exception. We are honoured by Bangladesh Bank's recognition in the 'Sustainability Rating 2023.' Our commitment to sustainable financing goes beyond simply ticking boxes—it's about creating real, lasting impact. Our pioneering Green Financing initiative has been instrumental, channeling significant capital into renewable energy projects like solar and wind, which have reduced carbon emissions and spurred economic growth in underserved regions.

Moreover, our Sustainable SME Financing program, recently reinforced by a USD 90 million term loan agreement from IFC will help us to empower local businesses with lower interest rates and embrace eco-friendly practices. By integrating ESG criteria into our lending policies, we ensure that every loan aligns with our sustainability goals, reinforcing our leadership in sustainable finance.

TDS: What future plans does Prime Bank have to further enhance sustainability within the financial sector?

MZR: Our vision for the future is to deepen our impact on sustainability across the financial sector. We are committed to expanding our green financing initiatives, with a focus on funding innovative technologies that drive the transition to a low-carbon economy. We also plan to scale our Sustainable SME Financing program, providing even more businesses with the tools they need to adopt sustainable practices.

Collaboration is key, and we aim to forge stronger partnerships with global institutions to bring in more resources and expertise. Additionally, we intend to integrate cutting-edge ESG analytics into our decision-making processes, ensuring that every investment not only delivers financial returns but also contributes to a more sustainable and equitable world. Our journey has just begun, and we're excited about what lies ahead.

TDS: What forms of government support would be most effective in advancing the efforts in sustainable finance?

MZR: Collaboration between the public and private sectors, along with support from regulatory and government authorities, is crucial for amplifying our impact in sustainable finance. I believe that targeted incentives, such as tax breaks or subsidies for green projects, would accelerate the adoption of sustainable practices across industries. Additionally, establishing clear and consistent regulations around sustainability reporting and carbon emissions would create a level playing field and drive more businesses towards eco-friendly initiatives.

Access to government-backed risk-sharing mechanisms would also enable us to finance more innovative and high-impact projects, particularly in renewable energy and green infrastructure. Finally, public-private partnerships focused on sustainability could leverage our combined resources and expertise to create large-scale, transformative change. Together, we can build a more resilient and sustainable future.