The International Finance Corporation (IFC) is set to extend a loan of up to $50 million to Pubali Bank PLC, incorporated in Bangladesh, in a financing transaction directed at expanding SME working capital and trade lending. Talwar Thakore & Associates (TT&A) advised IFC on this IFC Pubali Bank $50 million loan, with DFDL acting as Bangladesh law counsel. The transaction underscores IFC’s deepening commitment to financial inclusion and SME access to credit in Bangladesh.
Introduction
The International Finance Corporation, a member of the World Bank Group, is sanctioning a loan aggregating up to $50 million to Pubali Bank PLC, Bangladesh’s largest conventional (non-Shariah) commercial bank. The project comprises an investment of up to USD 50 million under IFC’s Working Capital Solutions (WCS) facility with Pubali Bank Limited. The loan proceeds are to be deployed exclusively through Pubali Bank’s working capital and trade-related lending programme, by way of eligible sub-loans extended to small and medium enterprises (SMEs).
The investment is intended to support the bank’s MSME growth strategy, and the financing is aligned with IFC’s country strategy of creating access to finance for SMEs and financial inclusion through investments in financial institutions.
Deal Value
The IFC is extending a loan aggregating up to USD 50 million to Pubali Bank PLC. Further details regarding tenor, pricing, and disbursement schedule were not disclosed.
Legal Teams Involved
TT&A (Talwar Thakore & Associates) — Indian Counsel to IFC
TT&A advised the International Finance Corporation on this financing transaction. The transaction team consisted of:
- Gautam Saha — Managing Partner
- Nikhil Bahl — Partner
- Amrit Mahal — Managing Associate
- Siddharth Tandon — Managing Associate
- Maansi Mehta — Senior Associate
DFDL — Bangladesh Law Counsel to IFC
DFDL Bangladesh, established in Dhaka, offers comprehensive local and multi-jurisdictional legal services with strong expertise in banking and finance. DFDL acted as Bangladesh law counsel for the International Finance Corporation on this transaction. Further details regarding the DFDL team members were not disclosed.
Significance and Impact
This transaction is part of a broader and sustained advisory relationship between TT&A and the IFC on financing transactions involving Bangladesh-based entities. TT&A has recently advised IFC on sanctioning loans to PRAN-RFL Group companies and Popular Pharma, both incorporated in Bangladesh, demonstrating a consistent cross-border financing practice in the region. TT&A had previously advised IFC on sanctioning loans for Bangladesh-based PRAN-RFL Group companies.
The underlying purpose of the loan reinforces IFC’s development finance mandate. The financing is a fit with IFC’s country strategy of creating access to finance for SMEs; Pubali Bank Limited is the largest conventional (non-Shariah) commercial bank in Bangladesh, with an asset size of USD 4.2 billion representing approximately 5% of private commercial bank assets in the country.
By channelling international development capital through a domestic financial intermediary, the transaction aims to bridge the credit gap facing SMEs — a segment that remains critical to Bangladesh’s economic fabric. DFDL has previously acted as local counsel on IFC transactions in Bangladesh, including the USD 117 million financing of the Excellerate LNG FSRU project. Its appointment as Bangladesh law counsel here further reflects the firm’s established role as a trusted local legal partner for multilateral lenders operating in the jurisdiction.
For deal tracking across Indian and South Asian markets, see the Deal Meter.
The IFC–Pubali Bank transaction, with TT&A and DFDL acting as counsel, reflects the continued deployment of multilateral development capital into Bangladesh’s banking sector to support SME lending. The dual-counsel structure — pairing Indian international law expertise with dedicated Bangladesh law capability — is consistent with the cross-border complexity that characterises IFC’s South Asia financing programme. Further details on transaction terms were not disclosed.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
