International Finance Corporation (IFC), a member of the World Bank Group, yesterday announced an investment of US$ 10 million in the Small Enterprise Assistance Fund Bangladesh Ventures Fund (SEAF BV) to invest in small and medium enterprises (SMEs) in Bangladesh.
The equity investment jointly came from IFC and Climate Investment Funds-Pilot Programme for Climate Resilience (CIF-PPCR) would offer blended finance solution to SME to strengthen their capacity to address operating difficulties arising from climate change, said a statement.
- SEAF BV was jointly launched by the IFC and the Small Enterprise Assistance Funds (SEAF) in 2010 to invest in SMEs in Bangladesh.
- However, this is IFC’s first climate resilience fund in Bangladesh
- According to its website, Climate Investment Funds is providing 72 developing and middle-income countries with urgently needed resources to manage the challenges of climate change and reduce their greenhouse gas emissions. The size of the total fund is $8.3 billion.
- CIF-PPCR is a $1.2 billion fund for Pilot Program for Climate Resilience (PPCR) and it is helping developing countries integrate climate resilience into development planning and offers additional funding to support public and private sector investments for implementation, said CIF website.
- SEAF BV is looking for investment opportunities in SMEs that are working to improve energy and water security, reduce industrial and agricultural waste, contribute to food security in Bangladesh.
- IFC has been investing in high growth SMEs in Bangladesh for a while now. It has previously deployed a $12 million equity fund for the purpose.