Bangladesh Secures Additional US$350 Million Loan Guarantee from World Bank

Bangladesh is set to secure an additional US$350 million loan guarantee from the World Bank to safeguard its liquefied natural gas (LNG) supplies against global market volatility, officials said. The country's state-run energy corporation, Petrobangla, expects to finalize the deal in October.

The extra funding would double the World Bank's existing commitment and allow Petrobangla to secure billions of dollars in commercial financing for LNG imports. This will help facilitate the opening of letters of credit (LCs) for importing LNG from the global market during 2027, said AKM Mizanur Rahman, a director of Petrobangla.

The incoming package would serve as a critical addition to the initial US$350 million guarantee approved under the World Bank's Energy Sector Security Enhancement Project (ESSEP). By doubling the IDA commitment, the mechanism would provide significant financial relief to an already strained economy.