By the aiming of Green Bangladesh, Trust Bank Limited introduced a green product ‘TRUST SHUFOLA’ for financing in Renewable Energy, Energy Efficiency, Effluent Treatment plant, Recycling plant, Safety and Securities Factories, Green Industries and Improve Brick Kiln plant/ project which can directly or indirectly contribute to the reduction of carbon emissions and increase financial inclusion.
Over the years, Trust Bank has taken a number of great moves to expand its diversified services aiming to help millions of rural populations. In view of what, Trust Bank Limited added a new product named ‘TRUST PRANTIK’ for expansion of income generating activities by bringing the unbanked segment of population under the banking network and also to gear up economic activities in the rural areas and increase financial inclusion. It is also designed for targeting the people of natural disaster affected area’s/ low income people, landless farmers, Small/ Marginal or micro entrepreneurs. They will start their banking relationship by opening a 10 taka account with the bank as per BB circular.
CLASSIFICATION OF SUSTAINABLE FINANCE:
The graphical representation is portraying our strategic vision on sustainable finance:
1. Green Finance:
(List of Green Products/Projects/Initiatives applicable for Term Finance)
|
Sl |
Sectors |
Product No. |
Green Category or Environment Friendly Sector |
|---|---|---|---|
|
1 |
Renewable Energy |
1 |
Net Metering Rooftop Solar System |
|
2 |
Solar Grid |
||
|
3 |
Solar Park |
||
|
4 |
Solar Irrigation Pumping System |
||
|
5 |
Solar Photovoltaic (PV) Assembly/Manufacturing Plant |
||
|
6 |
Solar Water Heater Assembly/Manufacturing Plant |
||
|
7 |
Solar Home System |
||
|
8 |
Solar Pump for Drinking Water |
||
|
9 |
Solar Cooker Assembly/Manufacturing Plant |
||
|
10 |
Solar Air Heater & Cooling System Assembly/Manufacturing Plant |
||
|
11 |
Solar Powered Cold Storage |
||
|
12 |
Biogas Plants |
||
|
13 |
Integrated Cow Rearing and Setting up of Bio-gas Plant |
||
|
14 |
Wind Power Plant |
||
|
15 |
Hydro Power Plant |
||
|
16 |
Portable Solar Charging Station |
||
|
2 |
Energy & Resource Efficiency |
17 |
i. Energy Efficiency (under GTF/TDF) |
|
ii. Resource Efficiency |
|||
|
iii. Heat and temperature Management |
|||
|
iv. Air ventilation and circulation efficiency |
|||
|
v. Business process automation |
|||
|
vi. Operations Management |
|||
|
vii. Waste Management |
|||
|
viii. Water use Management |
|||
|
ix. Human resources development and Management |
|||
|
x. Accounting, Inventory Management, Marketing, Sales and Security Management Automation |
|||
|
18 |
Auto Sensor Power Switch Assembly Plant |
||
|
19 |
Energy Efficient Cook Stove Assembly Plant |
||
|
20 |
LED Bulb/Tube Manufacturing/Assembly Plant |
||
|
21 |
Energy Efficient Lime Kiln |
||
|
22 |
Improved Rice Parboiling System |
||
|
3 |
Alternative Energy |
23 |
Pyrolysis Processed Oil/Bio-crude Oil/Bio Fuel Manufacturing Plant |
|
24 |
Lithium Battery Manufacturing Plant |
||
|
4 |
Liquid Waste Management |
25 |
Biological ETP |
|
26 |
Combination of Biological and Chemical ETP |
||
|
27 |
Conversion of Chemical ETP into Combination of Biological and Chemical ETP |
||
|
28 |
Central ETP |
||
|
29 |
Waste Water Treatment Plant |
||
|
30 |
Sewage Water Treatment Plant |
||
|
5 |
Solid Waste Management |
31 |
Methane Recovery and Power Production from City/Municipal Waste Plant |
|
32 |
Compost Production from City/Municipal Waste Plant |
||
|
33 |
Hazardous Waste Management Unit/Plant |
||
|
34 |
Medical Waste Management Unit/Plant |
||
|
35 |
E-Waste Management Unit/Plant |
||
|
36 |
Sludge Management Unit/Plant |
||
|
6 |
Circular Economy & Eco-Projects Financing |
37 |
PET Bottle Recycling Plant |
|
38 |
Plastic Waste (PVC, PP, LDPE, HDPE, PS) Recycling Plant |
||
|
39 |
Paper Recycling Plant |
||
|
40 |
Recyclable Bag Manufacturing Plant |
||
|
41 |
Recyclable Poly Propylene Thread and Bag Manufacturing Plant |
||
|
42 |
Battery (Solar/Led Acid/Lithium Ion) Recycling Plant |
||
|
43 |
Recycling & Recyclable Goods Manufacturing Plant |
||
|
44 |
Biodegradable/Reusable/Compostable Items Manufacturing Plant |
||
|
45 |
Solar powered/used Items Manufacturing Plant |
||
|
46 |
Eco-industrial parks |
||
|
47 |
Jute Products Manufacturing Plant |
||
|
7 |
Environment Friendly Brick Production |
48 |
Compressed Block-Brick |
|
49 |
Foam Concrete Brick |
||
|
50 |
Environment Friendly/Brick Kiln Efficiency Improvement Project (Tunnel Kiln, HHK and other eco-friendly bricks) |
||
|
8 |
Green/Environment Friendly Establishments |
51 |
Establishment of Green Industry certified by appropriate authority (In Bangladesh - SREDA, Internationally - USGBC-LEED, BREEAM, CASBEE, EDGE, GRIHA) |
|
52 |
Establishment of Green Building certified by appropriate authority (In Bangladesh - SREDA, Internationally - USGBC-LEED, BREEAM, CASBEE, EDGE, GRIHA) |
||
|
53 |
Establishment Green Featured Buildings (Characteristics have been given in Annex-1) |
||
|
54 |
Concerning Factory working environment and safety (Fire defense system, disaster defense and prevention system, workers' health safety system) |
||
|
55 |
Affordable Green Housing |
||
|
9 |
Green Agriculture |
56 |
Earthworm compost manure production |
|
57 |
Palm oil production |
||
|
58 |
Organic manure production from slurry |
||
|
59 |
Forestation (Social/integrated/Agro) |
||
|
60 |
Organic Farming |
||
|
61 |
Rooftop Agriculture/Vertical Farming or Gardening |
||
|
62 |
Fish cultivation in cage |
||
|
63 |
Bio-flock fish cultivation |
||
|
64 |
Integrated Recycling System (IRS) fish cultivation/Bottom clean fish cultivation |
||
|
65 |
Financing in coastal aquaculture |
||
|
66 |
Floating system cultivation, Hydroponic cultivation/farming |
||
|
10 |
Green CMSME |
67 |
Financing in Cottage Industry |
|
11 |
Green Socially Responsible Financing (SRF) |
68 |
Community Investment for addressing Climate Resilience and Disaster Management in a concessional rate (finance to clean air, clean water, minimizing industrial and municipal waste, recovery and protection of water bodies, marshy lands, expansion of green coastal belt, water purification, sustainable sanitation, water blockage mitigation, soil and water salinity mitigation, river erosion prevention ) |
|
69 |
Financing in Green/Clean transportation projects (cycles, hybrid car, green vehicles those run on wind, solar energy, electricity, hydrogen, bio-fuels etc.) |
||
|
70 |
Financing in Sandwich Panel (Floating or Movable Houses in coastal areas or climate vulnerable zone) |
||
|
71 |
Financing in Govt. approved Eco-tourism project |
||
|
72 |
Health and Healthcare Services |
||
|
73 |
Digital Loan/credit using MFS or other digital medium |
||
|
74 |
Financing in educational institutions, scholarship programs or EdTech startups that aim to improve access to quality education and workforce development. |
||
|
75 |
Financing projects and businesses that promote gender equality, such as those supporting women entrepreneurs, addressing gender-based violence and promoting women's rights. |
||
|
76 |
Financing projects that promote cultural preservation, arts and heritage conservation. |
||
|
77 |
Natural ecosystem protection and restoration. |
||
|
12 |
Blue Economy Financing |
78 |
Marine sustainable Fisheries |
|
79 |
Mariculture |
||
|
80 |
Coastal Ecotourism |
||
|
81 |
Marine Plastic Pollution |
||
|
82 |
Coastal Renewable Energy |
||
|
83 |
Maritime Transport |
||
|
84 |
Green Shipyard (Ship building and ship breaking) certified by appropriate authority (compliant with the International Maritime Organization (IMO) Guidelines for Safe and Environmentally Sound Ship Recycling under the Hong Kong Convention) |
||
|
85 |
Eco Port |
||
|
86 |
Marine protection |
||
|
13 |
Information and Communication Technology |
87 |
Hi-Tech Park |
|
88 |
Broadband Networks and IT solutions |
||
|
89 |
Internet of Things (IOT) |
||
|
90 |
Artificial Intelligence |
||
|
91 |
Robotics |
||
|
14 |
Miscellaneous |
92 |
Research and development for Sustainable Activities |
|
93 |
Sustainable Supply Chain Management |
||
|
94 |
Manufacture and assembly of green building products |
(Note: Product time to time updated by Bangladesh Bank. As per the SFD Circular-02/2023 (Refinance under BDT 1,000 Cr.), only 70 products out of 94 are presently eligible for refinance.)
Financing Parameters
- Loan Amount: Based on the Customer/Project requirement and TBL credit policy.
- Loan Type: Term loan/investment (only in BDT).
- Tenor: 3 to 10 years (dependent on the project and the banker-customer relationship).
- Grace Period: Dependent on the project.
- Rate of Interest: 5.00% (if refinanced from Bangladesh Bank under environment-friendly products/initiatives/GTF/TDF).
- Debt-Equity Ratio: 70:30.
2. SUSTAINABLE LINKED FINANCE:
2.1 SUSTAINABLE AGRICULTURE :
Finance to Sustainable Agriculture is linked to Sustainable Finance.
Sustainable Agriculture Sectors\Areas
- Crops
- Irrigation equipment
- Agro-equipment
- Live-stock and poultry farming
- Fisheries
- Grain Storage and marketing
- Poverty Alleviation
- Others (time-to-time as recognized by Bangladesh Bank)
Along with the aforementioned products, financing for Integrated Farming System (IFS) in the specific sectors like horticulture, livestock, fishery, agro-forestry, apiculture etc. to enable farmers not only in maximizing farm returns for sustaining livelihood, but also to mitigate the impacts of drought, flood or other extreme weather events with the income opportunity from allied activities during crop damage.
2.2 SUSTAINABLE MSME :
Finance to Sustainable MSME (micro, small & medium as defined by SMESPD, BB) is linked to Sustainable Finance.
Sustainable MSME Industries/Projects :
Low Risk Rated (as per ESDD) Micro, Small and Medium enterprises financing with special focus to:
- Herbal cosmetic manufacturing industries
- 100% local ingredients-based milk processing industry
- Handicrafts, Handloom and alike
- Agro feed manufacturing industry
- Jute made products manufacturing industry
- Unani/Ayurvedic/Homeopathic manufacturing industries
- Rice processing industry
- Agro equipment manufacturing industry
- Production of bio pesticide, production of organic fertilizer
- Bran wood projects
- Horticulture processing industry
2.3 SOCIALLY RESPONSIBLE FINANCING (SRF):
Finance to Socially Responsible Products/Projects/Initiatives/Sectors is linked to Sustainable Finance. Socially Responsible Finance (SRF) is financing that supports actions mitigating or addressing a specific social issue and/or seeking to achieve positive social outcomes especially but not exclusively for a target population(s). SRF project categories include but are not limited to, providing and/or promoting affordable basic infrastructure, access to essential services (such as health and healthcare), affordable housing, employment generation through the potential effect of SME financing and microfinance, food security, and socioeconomic advancement and empowerment.
Socially Responsible activities/projects linked to Sustainable Finance areas
- Financing/Investment through MFI (MRA Regulated)/NGO (Govt. Approved) Linkage Mode for capacity building, Education, employment generation including self employment
- Financing in trading of green and agro products using ICT/online/e-business platform (as recognized by BB)
- Financing in Orphanage/Child Rehabilitation Center/Old Age Home.
- Others (time-to-time as recognized by Bangladesh Bank).
3. OTHER SUSTAINABLE LINKED FINANCE:
- Low Risk Rated Projects/Initiatives using ESDD checklist (other than Green Finance, Sustainable Agriculture, Sustainable MSME, SRF and Working capital and demand loan of Green Products).
- Working capital and demand loan of Green Products/projects/initiatives.
- Others (time-to-time as recognized by Bangladesh Bank).
