At the annual meeting of the Islamic Development Bank (IsDB) held in Riyadh on Monday, Bangladesh and the IsDB signed a significant loan agreement for the second phase of the ‘Rural and Peri-Urban Housing Finance Project,’ valued at approximately $289.52 million.

The five-year project agreement was inked by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, and Dr. Mansur Muhtar, Vice President of IsDB.

The signing ceremony was attended by notable figures including Finance Minister Abul Hassan Mahmood Ali and Muhammad Al Jasser, Chairman of the IsDB.

This initiative, set to be implemented by the Bangladesh House Building Finance Corporation under the Financial Institutions Division, aims to provide affordable housing loans. The project will focus on constructing well-planned, sustainable, and eco-friendly multi-storied residential buildings with essential amenities for the low and lower-middle-income groups in rural and peri-urban areas of Bangladesh.

The project not only aims to provide affordable housing but also ensures the conservation of cultivable land by promoting the optimum use of available land. Additionally, it will enhance the capacity of the House Building Finance Corporation in its financing activities related to house building loans.

The IsDB has been a consistent and trusted development partner for Bangladesh, supporting various sectors through grants, project loans, trade financing, private sector financing, and export credit guarantees aimed at fostering socio-economic development in the country.