Regulatory Alerts2026-05-11
Bangladesh Bank SFD Circular No. 01: Green Transformation Fund for Rural and Local Entrepreneurs
Bangladesh Bank has issued SFD Circular No. 01 to establish the Green Transformation Fund (GTF), a refinancing facility providing up to 1000 crore BDT to Participating Financial Institutions for green and sustainable projects targeting rural and local entrepreneurs. Eligible investments must align with specified environmental criteria, including renewable energy, energy efficiency, water and waste management, and resource recycling, with loans structured for two to five years and subject to a 1% or 5% fee depending on the project type. PFIs are mandated to execute a Participation Agreement, conduct rigorous due diligence, ensure at least 80% of project costs qualify for refinancing, and submit quarterly disbursement and recovery reports to maintain compliance with the fund's operational guidelines.