Bangladesh Bank has launched a Taka 1,000 crore revolving refinance fund aimed at promoting investment in green industries and environmentally sustainable factory buildings, as part of efforts to support the country’s climate objectives and accelerate sustainable industrial development.
According to a circular issued by the central bank, the fund will provide low-cost financing to eligible projects through banks and financial institutions. Participating lenders will be able to access refinance support at an interest rate of 2% and extend loans to borrowers at a maximum interest rate of 5%.
The refinance facility will be available for periods ranging from three to 10 years and will include a grace period of up to one year. Bangladesh Bank stated that the scheme is designed to improve access to affordable finance for environmentally responsible industrial projects.
The fund will support the establishment of green industries and green factory buildings that have obtained certification or pre-certification under internationally recognised sustainability standards, including LEED, EDGE, BEEER and GreenARCH.
Bangladesh Bank said the refinance fund has been created from its own resources and will come into effect immediately. The central bank noted that the initiative is expected to strengthen green financing within the country’s financial sector while accelerating the development of environmentally sustainable industries.
The latest initiative comes as Bangladesh continues to reinforce its position as a global leader in green manufacturing, particularly within the textile and apparel sector, where the country is home to a significant number of internationally certified green factories.
Industry observers believe the fund could play an important role in encouraging further investment in sustainable manufacturing infrastructure, supporting both environmental goals and long-term industrial competitiveness.
Bharat Tex Special Report 2026 
