Bangladesh Bank
বাংলা      

Equity and Entrepreneurship Fund Unit   

Name & Designation Email Telephone Fax
Mohammad Mamunul HoqueExecutive Director
mamunul.hoque@bb.org.bd
880-2-9530470(O)
(M)
88-02-9530470
Md. Obaid Ullah ChowdhuryDirector (EEF Unit)
obaid.chowdhury@bb.org.bd
02-55665001-6/ 22313(O)
(M)
880-2-9514539

Background: Equity and Entrepreneurship Fund (EEF) Unit was formed on the basis of an agency agreement between Government of the People's Republic of Bangladesh (GoB) and Bangladesh Bank (BB) executed on 26 December 2000 to administer the Equity Development Fund (EDF) subsequently renamed as Equity and Entrepreneurship Fund (EEF). In the budget of the Government for FY 2000-2001 a sum of Tk 100.00 (hundred) crore was earmarked to set up the mentioned fund with a view to encouraging the investors to invest in risky but otherwise promising two sectors: Software industry and Food-processing & Agro-based industry. Afterward, Bangladesh Bank was appointed by the GoB as the implementing agency of the project. Hence, the responsibility related to the Fund management was given to the Board of the Bangladesh Bank and a separate Unit (EEF Unit) was shaped to manage its operations. Later, with the approval of Government, under a sub-agency agreement between Bangladesh Bank and Investment Corporation of Bangladesh (ICB) executed on 01 June 2009 ICB was entrusted with performing operational activities of EEF as subagent of BB.


Entrepreneurship Support Fund (ESF): EEF was a great initiative of the Government to promote specific sectors under specific conditions. Considering all the recommendations and findings of various surveys on the performance of EEF and workshops with the participation of Government, Bangladesh Bank and all the stakeholders, in 2017, the decision was taken to introduce a debt model with simple interest at a tolerable level instead of existing equity model in managing this generous scheme of the government. As a result, the name of EEF was changed to ESF (Entrepreneurship Support Fund) in 2017 and through EEF Circular No-35/2018 on 05 August 2018 ESF Policy, 2018 was issued.


ESF Process Flow: The fund can be availed by an investor as per the following process flow subject to compliance of existing policy at each stage:

  1. Submission of Expression of Interest (EOI)
    • i) Food processing and Agro-based Industry: Fill up EOI form online ? Submit a nonrefundable pay order/bank draft of Tk 2000.00 directly/by post/by courier to the address of EEF Unit, Bangladesh Bank with a print copy of EOI.
    • ii) ICT Based Industry: Collect EOI from ICB against a nonrefundable Pay order/Bank Draft of Tk.2000.00 ? Submit duly filled EOI directly/by post/by courier to ICB.
  2. Accumulation of EOIs in ICB: Sending EOIs of food processing and agro-based industries filed with Bangladesh Bank to ICB
  3. Presentation of applications to Project Appraisal Committee (PAC) by ICB.
  4. Interviewing and short listing entrepreneurs.
  5. Submission of Project Appraisal Report to ICB by the shortlisted entrepreneurs through any of the appraising Bank/FI.
  6. Submission of Appraisal Reports to the concerned PAC to ascertain the technical and financial feasibility of the proposed project.
  7. Instructions sent to appraising Bank/FI to submit final assessment report for feasible projects.
  8. Registration of the feasible project under RJSC as Private Limited Company by the entrepreneurs of Food processing and Agro-based Industry. ICT based companies are eligible to apply for ESF loan having completed at least one year period since registration at RJSC as a private limited company.
  9. Submission of final Assessment Report to ICB by appraising Bank/FI.
  10. Presentation of final assessment reports before PAC to have recommendation for approval.
  11. Submission of recommended project proposals to Sanction Board for final approval.
  12. Issuance of sanction letter.
  13. Documentation:
    • i. Mortgaging required collateral by the entrepreneur in favor of ICB.
    • ii. Charge creation at RJSC in favor of ICB
    • iii. All other documentation requirements according to the sanction letter.
  14. Verification of entrepreneur's investment (51% of the project cost) through joint inspection of ICB, appraising institution and BB.
  15. Disbursement of ESF loan (49% of project cost) in 3-4 installments confirming entrepreneur's adequate investment.
  16. Issuance of loan repayment schedule after full disbursement.


Functions of EEF Unit: a) Policy formulation, b) Fund management, c) Project performance monitoring, d) Supervise the functioning of the ICB.


Necessary Links:


Contact Address:
Equity and Entrepreneurship Fund Unit
Level-4, Suit-03, Sena Kalyan Bhaban
Bangladesh Bank
Head Office, Dhaka-1000
Phone:88-02-9530212
PABX:9530010-75