DHAKA, June 8, 2026 (BSS) - Bangladesh Bank (BB) has introduced a Tk 1,000 crore revolving refinance scheme aimed at promoting the establishment of green industries and environmentally sustainable factory buildings across the country.

According to a circular issued today, the fund has been created from Bangladesh Bank's own resources to facilitate investments in eco-friendly industrial infrastructure and support the country's transition towards a sustainable economy.

The scheme will provide refinancing facilities for the establishment of green industries and green factory buildings under Bangladesh Bank's broader sustainable financing framework that covers 70 environmentally friendly products and projects.

Under the scheme, participating financial institutions (PFIs) will receive refinance support from Bangladesh Bank at an interest or profit rate of 2 percent per annum, while the maximum lending rate for customers has been capped at 5 percent.

The refinance tenure will range from three to ten years, with a grace period of up to one year. 

All repayments will be made under the Fixed Principal Method. The circular also prohibits PFIs from imposing any hidden charges or additional fees on borrowers beyond applicable government taxes and duties.

The facility will be available to all conventional banks, Islamic banks and financial institutions. 

State-owned banks and finance companies are automatically eligible, while private and foreign commercial banks must maintain a classified loan ratio below 10 percent. 

The central bank may relax the threshold up to 15 percent in special cases, depending on institutional performance.

Interested financial institutions will be required to sign participation agreements with Bangladesh Bank's Sustainable Finance Department before accessing the fund.

To qualify for financing, borrowers must not be loan defaulters according to Credit Information Bureau (CIB) records and must maintain a minimum debt-equity ratio of 70:30. The maximum refinance limit for an individual borrower has been fixed at Tk 100 crore.

For green factory building projects, Bangladesh Bank will recognize certifications from LEED, EDGE, BEEER and GreenARCH in the absence of a dedicated national certification framework. 

Foreign certification agencies must collaborate with local partners to ensure compliance with domestic requirements.

The circular also requires PFIs to ensure that financed projects comply with standards and regulations prescribed by relevant authorities, including the Department of Environment, Fire Service and Civil Defence, Sustainable and Renewable Energy Development Authority (SREDA), Directorate General of Health Services and the Office of the Chief Inspector of Boilers.

Bangladesh Bank said the initiative is aligned with several national and international development commitments, including the Perspective Plan of Bangladesh, National Sustainable Development Strategy, Intended Nationally Determined Contributions (INDCs), Bangladesh Delta Plan 2100 and the Sustainable Development Goals (SDGs).

The Sustainable Finance Department will oversee implementation of the scheme. Participating institutions must submit refinance applications through Bangladesh Bank's E-Refinance Software and provide quarterly utilization reports.

Repayment installments, including interest or profit, will be automatically deducted from the participating institutions' current accounts maintained with Bangladesh Bank every quarter. 

Failure to maintain sufficient balances will result in penalties based on the applicable refinance rate plus the prevailing bank rate.

The central bank warned that submission of false information or failure to submit reports on time may result in financial penalties and exclusion from the refinance programme. 

Bangladesh Bank also reserves the right to conduct on-site inspections to verify proper utilization of funds.

The circular was issued under Section 45 of the Bank Company Act, 1991 (amended 2023) and Section 41 of the Finance Company Act, 2023, and came into effect immediately.