Dhaka, Bangladesh (BBN) – Citibank, N.A. Bangladesh has arranged to raise BDT 1.50 billion term loan for a microfinance institution, according to BURO Bangladesh.

The necessary facility document related to the financing is expected to be signed soon, officials said in the capital, Dhaka on Sunday.

In compliance with Bangladesh Bank directives to expand credit in the agricultural sector, the entire facility arranged by Citibank, being the lead arranger, is earmarked for the expansion of BURO’s agricultural loan portfolio.

BURO’s Finance Director M. Mosharrof Hossain said that 100 per cent of the financing raised from banks will be directed towards the agricultural sector through non-governmental organization (NGO)-linking system.

Citibank, N.A. leveraging on its experience in the microfinance sector and structured transactions is the lead arranger as well a participant in the fund raising, the U.S.-based bank said in a press statement in Dhaka on Sunday.

The other participants in the financing are-Sonali Bank Ltd, Janata Bank Ltd, Agrani Bank Ltd., The City Bank Ltd., Eastern Bank Ltd., Dutch Bangla Bank Ltd., Mutual Trust Bank Ltd., National Bank Ltd., Prime Bank Ltd., Pubali Bank Ltd., Southeast Bank Ltd., Standard Bank Ltd. and United Commercial Bank Ltd, according to the statement.

BBN/SS/SI/AD-11:55 am (BST)