51792 - MFP-SME Prime Bank

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Summary of Investment Information

Project Number

51792

Company Name

PRIME BANK PLC.

Date SPI Disclosed

Nov 19, 2025

Country

Bangladesh

Region

South Asia

Projected Board Date

Dec 19, 2025

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jan 26, 2026

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Dec 19, 2025
Signed : Dec 30, 2025
Invested : Jan 22, 2026

Sector

Commercial Banking - General

Project Description

The proposed Project is a USD denominated senior, unsecured Working Capital Solutions (WCS) loan of up to US$70 million to Prime Bank PLC (PBL or the Bank) in Bangladesh, consisting of: (1) up to US$50 million on IFC's own account (IFC A Loan) and (2) up to US$20 million in core mobilization from one or more B lenders. The Project is structured as a one-year facility, renewable twice for an additional one year each time, resulting in a maximum aggregate tenor of three years. The proceeds of this investment will be utilized by the Bank for on-lending to export- and import-oriented SMEs through PBL's offshore banking unit (OBU).

The Project is being processed under the SME Envelope of IFC's MSME Finance Platform (MFP) enabling the Project to benefit from the MFP's streamlined procedure with Delegated Authority.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
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
Straight Senior Loan	Loans to SME Borrowers

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

Development Impact

Project level outcome: Increased access to finance for SMEs - Through this Project, IFC will support the Partner Banks in providing much-needed US-dollar liquidity for on-lending to trade finance focused SMEs, enabling them to grow and create jobs. Market level outcome: Resilience - The proposed Project will send a positive signal to the market and contribute towards encouraging other international lenders and correspondent banks to reassess their perception of, and appetite for Bangladesh.

Financial Additionality Financing structure: The IFC loan is anticipated to provide the Bank with critical U.S. dollar liquidity support and enable it to support working capital and trade-related needs of its SME clients, particularly in sectors like RMG, cement, and agriculture. Through this Project, IFC is offering U.S. dollar funding up to 3 years. PBL, like all other banks currently in Bangladesh, is reliant on mostly deposits for financing, which tend to be shorter-tenor and in local currency. Medium- to long-term liquidity in U.S. dollars remains scarce in Bangladesh. Currently, more than 90 percent of the U.S. dollar financing that is available to Bangladeshi banks from foreign lenders is short-term, with a tenor of approximately 6-9 months. Over the past 12 months, neither U.S. dollar-denominated syndicated loans nor U.S. dollar-denominated corporate bonds were issued by companies in Bangladesh at similar ratings. Resource mobilization: Given the low investor risk appetite for Bangladesh’s banking sector, local banks have faced challenges in attracting substantial funds in the country. Through this Project, IFC expects to mobilize B loans of up to US$20 million from other lenders. Non-financial Additionality Risk Mitigation: IFC provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks. Such comfort is often due to IFC’s reputation in the market, role as honest broker, trusted and long-term client partnerships, signaling function for sound projects, convening power, close relationships with governments, and rigorous due diligence processes. IFC’s involvement is expected to send a strong positive signal to the market, encouraging other lenders – who are currently in discussions with Prime Bank for more longer-term funding – to move forward with their own commitments.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
MSME share of total loan portfolio	%	.	Not Available	Not Available	Not Available
Number of Outstanding Loans, MSMEs	number	.	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 project involves a US$ 70 million WCS loan to Prime Bank (PBL or the bank) to support its lending to small and medium enterprises (SME). PBL’s SME portfolio comprises ready made garment manufacturers, textile mills, printing and dyeing companies, wholesale and retail traders (including importers), construction companies and food processing enterprises. These business segments present medium-low Environmental & Social (“E&S”) risks and impacts which are readily manageable. The typical E&S risks in the SME borrower’s operations relate to labor and working conditions, occupational health and safety, supply chain risk including child labor and forced labor, gender based violence and harassment, air emissions, waste management, and handling of hazardous materials. This project will not support coal-related activities and 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 retrenchment or e) significant Occupational Health and Safety risks. Hence, the project is categorized as Category FI-2 in accordance with IFC Sustainability Policy. The E&S requirements will include IFC Exclusion List, additional list of restricted commodities and relevant national E&S laws and regulations.

This is an existing client with an existing E&S risk management system (ESMS) and E&S officer responsible for the ESMS implementation. The ESMS includes guidance and tools for screening against IFC Exclusion List and restricted commodity list and due diligence procedures for assessment of compliance with relevant national E&S laws and regulations for the bank’s entire lending operations. The additional criteria for carrying out industry specific ESDD as defined by the latest ESRM Guidelines of Bangladesh Bank have also been incorporated in the ESMS. The current ESMS is commensurate with the E&S risks associated with this project and Prime Bank will be required to continue implementing it. The bank's HR policies are aligned with performance standard 2 on labor and working conditions and the bank follows the applicable Life and Fire Safety requirements.

Contacts

For Inquiries About the Project, Contact

Prime Bank PLC
Mohammad Anisur Rahman
Executive Vice President – FI
+8801755645468
anis@primebank.com.bd
Simple Tree Anarkali (Level -3), 89 Gulshan Avenue, Dhaka- 1212
www.primebank.com.bd

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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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