51230 - Pubali Bank Debt Investment

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

51230

Company Name

Pubali Bank PLC

Date SPI Disclosed

Apr 13, 2026

Country

Bangladesh

Region

South Asia

Projected Board Date

Jun 12, 2026

Environmental Category

FI-2 - Limited

Status

Pending Signing

Last Updated Date

Jun 30, 2026

Department

CF4S2 - Regional Industry - FIG Asia & Pac/FIG Bangladesh, Sri Lanka, Nepal

Industry

Financial Markets

Previous Events

Approved : Jun 29, 2026

Sector

Commercial Banking - General

Project Description

The proposed project consists of a debt investment of up to US$190 million in Pubali Bank PLC (“Pubali Bank” or the “Bank”), through three facilities, including: (1) an up to US$100 million IFC own account investment in a green bond to be issued by Pubali Bank, (2) an up to US$50 million Working Capital Solutions (WCS) loan to Pubali Bank on IFC’s own investment, and (3) an up to US$40 million unfunded trade facility under the Global Trade Finance Program (GTFP) on IFC’s own account. (the “Project”) The proceeds of the green bond will be used to finance the expansion of Pubali Bank’s green portfolio and will be aligned with the International Capital Market Association’s (ICMA) Green Bond Principles, supporting projects in renewable energy, energy efficiency, clean transportation, and green buildings. Meanwhile, the proceeds of the WCS loan will be utilized by the Bank to support SMEs, and the GTFP facility will be utilized for guaranteeing trade-related payment obligations.

Associated Advisory Engagement

The Project will be complemented by an advisory engagement to assist Pubali Bank in identifying energy efficient (EE) machinery portfolio in select sectors, measuring its impact in line with international best practices, and building capacity and knowledge of the Bank on EE equipment financing in Bangladesh. The Advisory will also support Pubali Bank with recommendations and an action plan for climate risk assessment.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Syndications	Labeled: Green;Blue;Social-Loans/Bonds
Straight Senior Loan	Loans to MSME (mix of Micro and SME)
Straight Senior Loan	Labeled: Green;Blue;Social-Loans/Bonds
Guarantee	Trade

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

Project level outcome: Increased access to green finance: Through this Project, IFC will support the Pubali Bank to grow its targeted green portfolio in renewable energy, energy efficiency, clean transportation, and green buildings projects. Project level outcome: Increased access to finance for SMEs - Through this Project, IFC will support the Bank by providing much-needed US-dollar liquidity for on-lending to trade finance focused SMEs, enabling them to grow and create jobs. Market level outcome: Sustainability - The proposed investment would mark the first green bond issuance by a financial institution in Bangladesh, making it a landmark transaction with significant demonstration and replication potential for the broader market. IFC has played an instrumental role in developing the country's Green Bond Taxonomy, Sustainable Bond Guidelines, and Climate-related Financial Disclosure Guidelines, positioning this investment as a natural extension of its broader commitment to advancing sustainable finance in Bangladesh. Beyond its immediate impact, the green bond is expected to deepen the local bond market and attract both domestic and international investors, further embedding sustainable finance practices within Bangladesh's financial sector.

Financial Additionality (a) Innovative financing instrument: The green bond will be the first such issuance in Bangladesh, which is aligned with the ICMA administered Green Bond Principles. The green bond, which is a new asset class both for the market and the Bank, requires careful structuring to ensure adherence to globally accepted standards to facilitate replicability. (b) Financing Structure: The WCS loan is anticipated to provide the Bank with critical medium tenor U.S dollar liquidity support and enable it to address working capital and trade-related needs of SME clients in Bangladesh. Non-financial Additionality Knowledge and Capacity Building: IFC will support Pubali Bank in adhering to high standards of transparency with respect to the use of proceeds and reporting, while ensuring compliance with international market best practices. In addition, IFC will assist the Bank in establishing its green finance business through the development of internal capacity, and a pipeline of eligible green projects and prepare climate risk assessment action plan. This support will include establishing the Bank's Green Bond Framework with international best practices, as well as obtaining a Second Party Opinion (SPO) on the framework.

Indicator	Metrics	Comments
MSME share of total loan portfolio	%
Number of FIs in Bangladesh issuing green bonds	#
Number of Outstanding Loans, Climate	number
Number of Outstanding Loans, MSMEs	number
Share of Climate Loan Portfolio	R:%Pct
Value of Outstanding Loans, Climate	$
Value of Outstanding Loans, MSMEs	$
Board Composition - Total (#)	number
Board Composition - Women (#)	individuals
Direct Employment (#) Operations And Maintenance	individuals
Number of Senior Management Positions	individuals
Number of Women In Senior Management	individuals

E&S Category Rationale / Risks and Mitigation

The project entails a debt investment in a privately placed, green bond to be issued by Pubali Bank PLC. (Pubali or the Bank) to finance the expansion of Pubali Bank’s green lending program, including renewable energy, recycling, energy efficiency, clean transportation and green buildings, and a Working Capital Solutions (WCS) loan to support the Small and Medium Enterprises (SME). The top five SME sectors by exposures are trade and commerce, readymade garments (RMG), textile mills, and food processing industries.
The bank’s current green lending portfolio comprises financing projects across energy efficient machinery in RMG sector, renewable energy, electric vehicles, and plastics recycling facilities. The Bank also introduced a flagship green loan product, which directs financing towards environmentally friendly projects and products such as renewable energy, waste management, and energy-efficient industries.

The main E&S risks and impacts of the project are related to, i) occupational health and safety, labor and working conditions, life and fire safety, supply chain risks and pollution aspects, at sub-borrower's premise; ii) potentially land and biodiversity impacts depending on the nature and location of the sub-borrower’s operations, and iii) the bank’s capacity and procedures in place to manage these risks. The bond proceeds will not be used to support any coal-related activities, any utility scale solar project, any hydropower project, and any higher risk business activities that may involve a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, d) risk of significant retrenchment, or e) significant occupational health and safety (OHS) risks.
Hence, the E&S risk of the proposed investment is medium, and the project is categorized as FI-2 in accordance with IFC’s Environmental and Social Sustainability Policy. The applicable Performance requirements will be i) the IFC- FI Exclusion List; ii) the host country E&S laws and regulations and (iii) IFC Performance Standards (PS) to a subset of eligible climate loans.

Pubali bank is a past IFC client. It has an E&S risk management system (ESMS) that follows the Bangladesh Bank ESRM guidelines, and the IFC Performance Standard (PS) 1 requirements. The bank has appointed an E&S officer responsible for implementation of the ESMS. The ESMS details procedure for screening against IFC Exclusion List and restricted commodity list and further includes E&S due diligence procedures for assessment of compliance with relevant national E&S laws and regulations for the bank’s entire lending operations. It also includes the additional criteria for carrying out industry specific ESDD as defined by the 2022 ESRM Guidelines of Bangladesh Bank. The current ESMS is commensurate with the E&S risks associated with this project and Pubali Bank will be required to continue implementing it.
The Bank’s HR policies are aligned with PS 2 on labor and working conditions and it follows the applicable Life and Fire Safety requirements in its own operations.

Contacts

For Inquiries About the Project, Contact

Pubali Bank PLC
Shahadat Hossain
Deputy Managing Director
+8801713033398
shahadat.id@pubalibankbd.com
Pubali Bank PLC, Head Office, 26 Dilkusha Commercial Area, Dhaka - 1000, Bangladesh. G.P.O. Box# 853
www.pubalibangla.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer