Investment Promotion & Financing Facility II (IPFF II) Project Cell   

Name & Designation	Email	Telephone	Fax
Md. Zakir Hossain ChowdhuryExecutive Director (Grade-1)	mzhossain.chowdhury@bb.org.bd	880-2-9530472	--
Rathin Kumar PaulDirector (IPFF II)	rathin.paul@bb.org.bd	88-02-9530193	-

Investment Promotion and Financing Facility II (IPFF II) Project has been taken up by Government of Bangladesh (with financial support of the World Bank) with a view to creating sustainable platform for long-term financing in infrastructure and strengthening skills and abilities of the private sector to fill the substantial infrastructure gap in Bangladesh. The IPFF II Project Cell of Bangladesh Bank (BB) acts as the Project Implementation Unit (PIU) for IPFF II. The estimated cost of IPFF II Project is USD 316.70 million and project tenure is July 2017 to April 2024.

Project Components

IPFF II Project has two broad components:

1. Long Term Infrastructure Financing Component (USD 312.20 million): This component provides long term funds to Participating Financial Institutions (PFIs) for on-lending to infrastructure projects undertaken by private sector investors.
2. Technical Assistance (TA) Component (USD 4.50 million): This component supports hiring consultants, capacity building for key stakeholders (Government Agencies, PFIs, project sponsors, E&S consulting firms) and project implementation unit (IPFF II Project Cell). BIFFL and the PPP Authority are among the project beneficiaries, receiving substantial TA support.

Eligible Sectors of IPFF II Financing

IPFF II financing can be extended to the following government approved/endorsed private sectors' infrastructure sub-projects:

• Power Generation, Transmission, Distribution, Renewable Energy and Services;
• Port Development (Sea, River and Land) including Inland Container Terminals, Inland Container Depots and Other Services;
• Environmental, Industrial and Solid Waste Management Projects;
• Highways and Expressways Including Mass-Transit, Bridges, Tunnels, Flyovers, Interchanges, City Roads, Bus Terminals, Commercial Car Parking etc;
• Airports, Terminals and Related Aviation Facilities;
• Water Supply and Distribution, Sewerage and Drainage;
• Industrial Estates, Economic Zones, Eco Parks, Theme Parks and Parks Development;
• Social Sector including Infrastructure in Health and Education;
• Information and Communication Technology (ICT, including Wi-Max, Internet Backbone and E-learning Facilities).

Financing Mix and Tenure of Facility Loan

• Typically the sponsor shall have at least 25 (Twenty-five) percent of the total sub-project cost as equity.
• IPFF II Project will finance no more than 50 (Fifty) percent of the total project cost of a sub-project.
• Financing to a single infrastructure sub-project shall not exceed 20 (Twenty) percent of the total IDA allocation under long-term infrastructure financing.
• The maximum term of Facility Loan is 20 (Twenty) years with maximum 3 (Three) years Grace Period.

Interest Rate of Facility Loan

IPFF II financing to PFIs can be provided in US Dollar (USD) or in Bangladeshi Taka (BDT), or in a combination of both currency (depending on request by the PFIs and business need of the sub-projects), at fixed or variable rates stated below:

Currency	Fixed	Variable
USD	USD 10-year SWAP OIS + 50 Basis Point (bp)	6 Month CME Term SOFR
BDT	GOB T-bill 364-day yield + 100 bp or Prevailing Weighted Average Rate of Interest on Deposits (WARID) + 100 bp whichever is lower	GOB T-bill 364-day yield or Prevailing Weighted Average Rate of Interest on Deposits (WARID) whichever is lower

In terms of loan repayment, the currency must be correspondent (USD in repayment of USD, BDT in repayment of BDT).

Enlistment of PFIs

• Private sector scheduled Commercial Banks (including foreign bank licensed in Bangladesh) and Financial Institutions operating in Bangladesh can apply for being enlistment as PFIs.
• IPFF II Project Cell selects PFIs subject to their compliance with the Eligibility Criteria as mentioned in the Operations Manual (OM). At present, there are 21 Banks and NBFIs which are enlisted as Participating Financial Institution (PFI) under IPFF II Project:

Banks

• Bank Asia Limited
• BRAC Bank PLC
• Dhaka Bank PLC
• City Bank PLC
• Dutch-Bangla Bank PLC
• Eastern Bank PLC
• Mercantile Bank Limited PLC
• Midland Bank Limited
• Mutual Trust Bank PLC
• One Bank PLC
• Prime Bank PLC
• Standard Chartered Bank
• Trust Bank Limited
• United Commercial Bank PLC

Non Bank Financial Institutions (NBFIs)

1. Bangladesh Infrastructure Finance Fund Limited (BIFFL)
2. IDLC Finance PLC
3. Industrial & Infrastructure Development Finance Company (IIDFC) Limited
4. Infrastructure Development Company (IDCOL) Limited
5. IPDC Finance Limited
6. Alliance Finance PLC
7. LankaBangla Finance PLC

Sub-Projects under IPFF II Financing

• Bangladesh Technosity Limited
• Meghna Industrial Economic Zone Limited
• Karnafuly Dry Dock Limited
• Summit Communications Limited
• Raw Tech Limited
• Technaf Solartech Energy Limited
• City Economic Zone Limited
• Fiber@Home Limited
• Bay Economic Zone Limited
• Hosendi Economic Zone Limited