Country’s first Peer Lending Partnership signed to strengthen CMSME enterprise ecosystem
IDLC Finance PLC has signed a Peer Lending Agreement with Citibank N.A., Bangladesh, Under the agreement, Citibank N.A. will extend a loan facility to IDLC Finance, the proceeds of which will be deployed exclusively for on-lending to eligible CMSME borrowers. This is the maiden peer lending arrangement in Bangladesh, which is structured under the Bangladesh Bank’s SMESPD Master Circular on CMSME Financing.
The collaboration is expected to ensure better access to formal credit for entrepreneurs and small businesses. It represents a breakthrough in mobilizing bank liquidity through a multi-product NBFI with specialized expertise and wider reach in CMSME financing.
The signing ceremony was held at the IDLC Corporate Head Office in Gulshan, Dhaka. It was attended by IDLC’s Managing Director & CEO, M Jamal Uddin, and Md. Moinul Huq, Citi Country Officer & Banking Head, Citibank N.A., Bangladesh, along with other senior officials from both institutions.
M Jamal Uddin, Managing Director & CEO of IDLC Finance, said, “This partnership demonstrates our commitment to innovative financing solutions that directly address the needs of CMSMEs, the backbone of Bangladesh’s economy. As a multi-product NBFI, we are uniquely positioned to leverage Citibank’s liquidity and our diverse portfolio to accelerate inclusive growth and create lasting impact”.
Md. Moinul Huq, Citi Country Officer & Banking Head, Citibank N.A., Bangladesh, said, “Citibank is proud to collaborate with IDLC in this landmark initiative. Together, we are enabling greater access to finance for CMSMEs, reinforcing our shared vision of supporting Bangladesh’s economic development”.
Bangladesh’s MSME sector comprises nearly 10 million enterprises, contributing about 25% to the national GDP. It also plays a vital role in employment generation. Despite playing one such critical role, the sector faces a financing gap estimated at USD 2.8 billion (IFC/World Bank, 2023). The IDLC–Citibank N.A. peer lending arrangement is expected to be a concrete step toward bridging this gap, strengthening the financial ecosystem, and enhancing financial inclusion.
