UNDP and City Bank have partnered to advance Bangladesh’s thematic bond market, aiming to launch the country’s first commercial green bond and mobilise investment for climate resilience and adaptation.
Bangladesh must unlock new sources of climate finance to tackle escalating climate risks, a senior United Nations official said, as a new partnership aims to channel private investment into green projects.
United Nations Development Programme (UNDP) Bangladesh Resident Representative Stefan Liller said the country, on the frontlines of climate change, needs innovative financing pathways to support resilience and adaptation.
The UNDP and City Bank PLC recently signed a Memorandum of Understanding to accelerate climate finance by advancing Bangladesh’s emerging thematic bond market with a focus on green investments.
The signing ceremony took place at the City Bank head office, where Liller and the bank’s Chief Executive Officer Mashrur Arefin formalised the agreement.
The deal marks a significant step toward mobilising private sector investment for climate-resilient development, according to UNDP.
Under the partnership, UNDP will provide technical assistance to support City Bank in issuing what would be the first green bond by a commercial bank in Bangladesh.
The proposed thematic bond will finance eligible green projects, including climate adaptation and mitigation initiatives, addressing the country’s high vulnerability to climate change and the global gap in adaptation financing.
The collaboration, including support for issuing a green bond, aims to connect sustainable finance with local opportunities and needs.
Arefin said the bank is already working on the issuance of a green bond.
“Our partnership with UNDP brings the technical strength and global reach needed to unlock new financing pathways and accelerate sustainable growth,” he said.
To align with international standards, UNDP plans to provide targeted technical support, including guidance on green bond frameworks, impact measurement, reporting and governance of proceeds.
These elements are expected to strengthen transparency and credibility, helping attract both domestic and international investors.
