In a bid to increase further its micro finance activities in rural areas, Brac, a leading micro finance institution in Bangladesh, has completed the closing of a new US$ 55 million equivalent taka loan facility from a group of international lenders.

The facility was structured by Standard Chartered Bank and RSA Capital as mandated co-lead arrangers, and subscribed and arranged by FMO of Netherlands, Norfund of Norway and KfW Bankengruppe of Germany, says a press release.

This is the first time that a 7-year international unsecured syndicated term loan facility has been structured and subscribed by international lenders for a micro finance institution in the country.

FMO and Norfund are lending US$ 25 million in equivalent taka and US$ 10 million in equivalent taka respectively.

Standard Chartered Bank is lending US$ 20 million in equivalent taka under guarantee from KfW. Standard Chartered will also act as the account bank for the facilities.

This facility will assist Brac to further expand its micro finance activities in the rural areas providing much needed impetus for the progress of small and medium enterprise, and agriculture during the post-flood and cyclone reconstruction period.