51621 - DCM DPR BD City Bank

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Summary of Investment Information

Project Number

51621

Company Name

CITY BANK PLC

Date SPI Disclosed

Jun 3, 2026

Country

Bangladesh

Region

South Asia

Projected Board Date

Jul 15, 2026

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

Jun 8, 2026

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Sector

Commercial Banking - General

Project Description

The proposed project aims to provide financing of up to US$90 million, for up to 5 years, to City Bank PLC (“City Bank” or the “Bank”), a long-standing IFC client, through the first of its kind Diversified Payments Rights (“DPR”) program established by a bank in Bangladesh. Of the total financing, US$60 million will be for IFC’s own account, while the remaining US$30 million will be mobilized (the “Project”).

The proceeds of the investment will be utilized by the Bank to support export- and import-oriented Micro, Small, and Medium Enterprises (“MSMEs”) (50%) and sustainable finance assets (50%), including renewable energy, green buildings, and electric vehicles, in Bangladesh.

Associated Advisory Engagement

This Project builds on IFC’s upstream initiative (Bangladesh DPR #607913) which included a comprehensive legal and regulatory assessment confirming the viability of the DPR instrument in Bangladesh.

The Project is complemented by an Advisory Services (AS) project (BD DPR IP #609925) that is providing capacity building to the Bank to support the launch and servicing of a DPR Program in Bangladesh.

Sponsor / Cost / Location

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
Straight Senior Loan	Loans to SME Borrowers
Straight Senior Loan	Labeled: Green;Blue;Social-Loans/Bonds
Syndications	Loans to SME Borrowers
Syndications	Labeled: Green;Blue;Social-Loans/Bonds

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

Development Impact

The Project is expected to increase access to finance for MSMEs and sustainable finance-oriented enterprises in renewable energy and Electric Vehicles (“EVs”), alongside strengthening the resilience of Bangladesh's financial sector. MSMEs face a substantial formal finance gap widened by successive crises. This Project will help City Bank expand lending to trade-oriented MSMEs, supporting enterprise growth and job creation. Furthermore, expanded lending to renewable energy and EV sectors will contribute to emissions reductions and help mobilize the large-scale investment Bangladesh requires under its Nationally Determined Contributions (NDC 3.0). The introduction of the DPR structure through this Project will enable Bangladeshi banks to access international capital markets, reducing vulnerability to capital flow disruptions and sustaining productive lending across economic cycles.

Financial Additionality: (a) Innovative Financing Structure: IFC’s financing will enable City Bank to access long-term foreign currency funding through Bangladesh's first-ever DPR transaction. Currently reliant on short-term deposits, the Bank is limited in its ability to offer longer-term loans. This transaction channels future export proceeds and remittances through a secure, internationally recognized structure, giving the Bank a more stable and diversified funding base. (b) Resource Mobilization: With investor appetite for Bangladesh's banking sector remaining low, IFC will leverage its global expertise to attract co-investors and private capital that would not otherwise be available, especially during a period of heightened uncertainty. Non-financial Additionality: (a) Knowledge, Innovation, and Capacity Building: IFC will provide hands-on advisory support to help City Bank design and implement this new funding program, the first of its kind in Bangladesh. IFC will support the Bank across data management, program setup, and capacity building.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
MSME share of total loan portfolio	%	Not Available	Not Available	Not Available
Number of FIs in Bangladesh with a DPRs Issuances	#	Not Available	Not Available	Not Available
Number of Outstanding Loans, Climate: MSMEs	number	Not Available	Not Available	Not Available
Number of Outstanding Loans, MSMEs	number	Not Available	Not Available	Not Available
Share of Climate Loan Portfolio	R:%Pct	Not Available	Not Available	Not Available
Value of Outstanding Loans, Climate: MSMEs	$	Not Available	Not Available	Not Available
Value of Outstanding Loans, MSMEs	$	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed IFC investment in City Bank will support the expansion of the Bank’s lending program for export- and import-oriented MSMEs (50%), as well as enhance sustainable financing (50%), through its medium-term DPR program.

The Bank’s MSME sector exposure includes ready-made garments, leather-based products, steel and metallic engineering, agri-based activities and products, pharmaceuticals, packaging and printing, computers, electrical and electronics, construction, light engineering, and various trade and service sectors. IFC’s financing within the sustainable segment is focused on renewable energy projects including grid-connected and rooftop solar, green buildings, and EVs (including hybrid and plug-in hybrid).

The key E&S risks associated with the activities of MSMEs include labor compliance and working conditions, occupational health and safety (OHS) including contractors and labor workforce on construction sites, community impacts, gender-based violence and harassment (GBVH), and pollution and waste management among others. Whereas in case of sustainable financing, the E&S risks are mostly related to solar supply chain issues and EVs, including potentially land, labor and biodiversity impacts depending on the nature and location of the sub-borrower’s operations in relation to the grid-connected solar projects.

The Project will not support financing related to any (1) hydropower activities, (2) any grid-connected solar projects sitting, developing or operating in agricultural land, forest land, wetlands or any sensitive ecological zones, (3) any activities that are part of the IFC Exclusion list, (4) any activities as per the Additional Exclusions to restricted commodities including coal-related activities, and (5) any other higher-risk business activities that may include: (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, or cultural heritage, (d) risk of retrenchment, and (e) significant occupational health and safety risks.

The Project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability. The applicable performance requirements will be the (i) IFC-FI Exclusion List, (ii) Additional Exclusions covering the restricted commodities, (iii) Higher-risk activities screening, (iv) Relevant national E&S laws and regulations, and (v) IFC Performance Standards (for sustainable finance). The Bank’s HR policies are generally in line with IFC PS-2 requirements.

The Bank has an environmental and social management system (ESMS) that aligns with the Bangladesh Bank Environmental and Social Risk Management guidelines (2022) (https://www.bb.org.bd/mediaroom/circulars/gbcrd/jun262022sfd03e.pdf).

The Bank has a team of qualified technical specialists responsible for E&S risk management. The ESMS consists of guidance on exclusion list screening, initial E&S risk categorization as per guidelines from the Department of Environment, generic E&S due-diligence followed by industry-specific and DFI-determined checklists according to transactions types, E&S risk scoring, including guidance on corrective action plan, and risk-based monitoring of sub-borrowers’ performance. Since no higher-risk activities will be supported by IFC’s use of proceeds, the Bank will make sure the higher-risk screening checklist is applied during the initial loan risk categorization. This adjustment in the loan assessment process will be applied without introducing mitigants that can alter the original risk classification. Similarly, use of rigorous land due diligence and supply chain review of all potential sub-solar projects and EVs will be integral to the E&S Due diligence process. The ESMS also includes a platform to receive, process, and manage third-party communications related to projects financed by the Bank.

There are no ESAP items recommended for this transaction.

Contacts

For Inquiries About the Project, Contact

City Bank PLC
Md Rafiq Ibne Nur Reza
Head of Agency and OBU Business, Operations & Reporting
8801678140010
rafiq.reza@citybankplc.com
City Bank Center, 28 Gulshan Avenue, Block SE(D), Gulshan, Dhaka - 1212
https://www.citybankplc.com/

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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.

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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.

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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.

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