The Investment Corporation of Bangladesh (ICB) has received approval from Bangladesh Bank for a Tk 3,000 crore loan at a reduced interest rate of 4%, down from the initial 10%.

Two-thirds of the loan will be utilised for repaying the corporation's existing debts, while the remaining amount will be invested in the capital market, said ICB Chairman Abu Ahmed confirming the information on Tuesday.

Earlier, on November 13, the government provided a sovereign guarantee to facilitate the loan.

Based on this guarantee, Bangladesh Bank issued a formal letter to ICB on November 27, sanctioning the Tk 3,000-crore loan at a 10% interest rate with a tenure of 18 months.

ICB later informed Bangladesh Bank that the 10% interest rate was unsustainable for the institution and requested a reduction to 4%.

Following the proposal, the central bank approved the loan at the revised interest rate.

The financial support aims to strengthen ICB’s capacity to meet its obligations while bolstering investments in the capital market, aligning with broader economic stability goals, Abu Ahmed said.