The Aga Khan Fund for Economic Development (AKFED) and BRAC today signed an agreement, in connection with a strategic partnership, which will allow BRAC to acquire a lead equity stake in Industrial Promotion Development Company of Bangladesh Limited (IPDC).
Under the agreement signed today, BRAC, Ayesha Abed Foundation and RSA Capital Limited will acquire an equity stake in IPDC from AKFED and assume the role of lead managers, subject to approvals from the Bangladesh Bank and from the Bangladesh Securities and Exchange Commission.
This strategic alliance is expected to enhance IPDC's capacity for growth and for its product offering in the large, medium and small-scale industrial, retail and consumer market segments in Bangladesh.
Speaking on the occasion of the signing, the Chairperson of BRAC, Sir Fazle Hasan Abed KCMG, said: “It is an exciting opportunity for BRAC to enter into a strategic partnership with AKFED in taking IPDC to new levels of growth and expansion by providing socially responsible financial services to the people of Bangladesh. This is a common goal of both BRAC and AKFED.”
The Director of AKFED, Mr. Sultan Ali Allana, stated: “We greatly value our strategic alliance with BRAC and we remain committed to strengthening IPDC as it progresses and grows by increasing its product offering and its outreach to encompass a wider population base in Bangladesh. We hope that we will be able to expand our strategic alliance, in the coming years as we pursue common values and objectives."
Industrial Promotion and Development Company of Bangladesh Limited (IPDC) was the first private sector financial institution of the country. It was established in 1981 by a distinguished group of shareholders, namely International Finance Corporation (IFC), USA, German Investment and Development Company (DEG), Germany, The Aga Khan Fund for Economic Development (AKFED), Switzerland, Commonwealth Development Corporation (CDC), UK and the Government of Bangladesh.
Since its inception, IPDC has played a pivotal and pioneering role in reshaping the private sector industrialization of the country through innovative financial products and services. Today IPDC is a diversified financial institution with a wide range of products and services covering corporate finance and advisory services, middle market supply chain finance, retail wealth management and retail finances.