Swedfund invests USD 20 million in Mutual Trust Bank PLC (MTB), in Bangladesh. The loan will secure long term financing for Micro-, Small- and Medium-sized Enterprises (MSMEs), contributing to growth and job creation, as well as for climate action measures.
As one of the world’s most densely populated and climate-vulnerable countries, Bangladesh combines robust economic growth with urgent development needs. From rising sea levels to widespread poverty and limited access to healthcare, clean energy, and safe infrastructure, there is a clear need for inclusive and sustainable solutions.
“Development Finance Institutions (DFIs) such as Swedfund play a vital role in addressing these challenges by investing in projects that improve lives, protect the environment, and build resilience. With this investment, we can support access to renewable energy and financial services for small and medium sized businesses, many of which are run by women, and thereby growth and more job opportunities,” says Marie Aglert, Chief of Investments at Swedfund.
Swedfund’s loan will be used to finance MTB’s lending operations across Bangladesh. The biggest share of the proceeds will be directed toward micro, small, and medium-sized enterprises (MSMEs). More than a third will support climate-related financing, enabling clients to set up renewable energy projects, such as solar and biogas, and energy efficiency projects, contributing to reduction of the country’s carbon footprint.
“This structure reflects Swedfund’s commitment to fostering private sector development, climate action, and inclusive economic growth. Home to over 170 million people, a rising youth population, and a thriving MSME sector, investments like this one play an important role in poverty reduction and human development in Bangladesh,” says Jane Niedra, Investment Director for Financial Inclusion at Swedfund.
“Our collaboration with Swedfund further strengthens MTB’s engagement with Development Finance Institutions, highlighting our dedication to inclusive finance and sustainable development. In the face of global economic challenges, we are confident that this partnership will yield mutual benefits and make a meaningful contribution to Bangladesh’s economy and climate resilience by directing funds to underserved MSMEs and climate-affected communities,” says Syed Mahbubur Rahman, Managing Director & CEO of MTB.
MTB has a longstanding background cooperating with DFIs, and Norwegian Norfund is currently the single biggest shareholder.