UNDP Bangladesh and City Bank PLC have signed a memorandum of understanding to speed up climate finance in Bangladesh by helping build the country’s thematic bond market, with a strong focus on green investment and climate-resilient development. The agreement was signed at City Bank’s head office in Dhaka on March 30, 2026, by UNDP Bangladesh Resident Representative Stefan Liller and City Bank CEO Mashrur Arefin, marking a new step toward bringing private capital into climate-focused projects. Under the partnership, UNDP will provide technical support so City Bank can issue what is expected to be the first green bond by a commercial bank in Bangladesh, a move that could open a new financing channel for projects that support climate adaptation and mitigation. That is especially important in a country like Bangladesh, where climate risks are high and the need for adaptation funding remains large. The bond is intended to finance eligible green projects, which means the money would support activities that can improve resilience, reduce harm from climate change, and promote cleaner growth. UNDP said it will help with the key technical pieces needed for a credible bond, including the green bond framework, impact measurement, reporting, and governance of proceeds. Those elements matter because investors usually want clear proof that the money is being used properly and that the project has real environmental value. City Bank said it is already working on issuing a green bond, and the partnership with UNDP is meant to add technical strength and international reach to that effort. The collaboration also reflects a wider shift in Bangladesh’s financial sector, where banks and development partners are beginning to look more seriously at sustainable finance as a practical tool rather than just a policy idea. If the bond is issued successfully, it could give other banks and companies a model to follow and show that climate finance can be tied to real local projects and business needs. For Bangladesh, that could mean more funding for cleaner infrastructure, stronger climate preparation, and better support for long-term development in a country that faces rising pressure from floods, heat, and other climate risks. The agreement is also a sign that the private sector may play a larger role in meeting climate goals, especially when technical support and clear standards are in place. In that sense, the partnership is not only about one bond, but also about building the rules, confidence, and market habits needed for greener finance to grow in the years ahead.
