Bangladesh Infrastructure Finance Fund Limited (BIFFL) has signed a Participation Agreement with SME Foundation to facilitate financing for the food processing sector under the SME segment, marking another milestone in strengthening Bangladesh’s food value chain.

Under this agreement, BIFFL will provide BDT 125 crore to SME Foundation for on-lending to cottage, micro, small and medium enterprises (CMSMEs) engaged in agro-based and food processing industries. SME Foundation will channel the funds to end borrowers through partner banks and non-bank financial institutions at a lending rate of up to 9 percent.

The agreement was signed at BIFFL’s head office in Dhaka by Mr. S.M. Anisuzzaman, Chief Executive Officer of BIFFL, and Mr. Anwar Hossain Chowdhury, Managing Director of SME Foundation, in the presence of senior officials from both organizations.

This initiative is being implemented under the JICA-funded Food Value Chain Improvement Project (FVCIP), which aims to enhance access to finance and provide technical assistance to agribusiness and food processing industries in Bangladesh. The project is designed to improve the overall food value chain, strengthen food security, and build the capacity of entrepreneurs through both financial and technical support.

The initiative is expected to expand access to affordable finance for SMEs, promote inclusive growth with special emphasis on women entrepreneurs, reduce import dependency, boost export potential, and generate employment opportunities—particularly in rural areas of Bangladesh.