At the annual meeting program of the Islamic Development Bank (IsDB) held in Riyadh, Bangladesh and IsDB signed a significant loan agreement titled "Rural and Peri-Urban Housing Finance Project-Second Phase," amounting to approximately €270.57 million (US$289.52 million).

The duration of the project spans five years from its effectiveness date.

The agreement, inked on Monday, saw the participation of Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, representing the Government of Bangladesh, and Dr. Mansur Muhtar, Vice President of IsDB, signing on behalf of the bank, as per a press release issued on Tuesday.

Finance Minister Abul Hassan Mahmood Ali and IsDB Chairman Dr. Muhammad Al Jasser were also present during the signing ceremony.

Under the implementation purview of the Financial Institutions Division, the Bangladesh House Building Finance Corporation will execute the project.

The project's primary objectives include providing affordable housing loans for the construction of well-planned, sustainable, and eco-friendly multi-storied residential buildings with essential amenities for the low and lower-middle-income populations residing in rural and peri-urban areas of the country.

This initiative is anticipated to facilitate the conservation of cultivable land by ensuring optimal and best land use.

Furthermore, it aims to enhance the capacity of the House Building Finance Corporation in its house-building loan financing activities.

IsDB, a trusted multilateral development partner of Bangladesh, has continually supported the country's socio-economic development since its inception, offering assistance in various forms such as grants, project loans, trade financing, private sector financing, and export credit guarantees.