In a significant development, Bangladesh is extending a Tk175.88 crore interest-free loan to the Islamic Development Bank (IsDB) for the construction of its second high-rise building in Dhaka. The project, known as IDB Bhaban-2, will comprise a 15-storey twin tower and a four-storey multi-purpose business center, with a total estimated cost of Tk361.25 crore. Scheduled to be erected in Agargaon, the capital's hub, the building is set to accommodate IsDB's office operations and commercial ventures within Bangladesh.

This initiative marks a departure from Bangladesh's conventional reliance on loans from foreign lenders, showcasing its willingness to contribute to regional development efforts. Despite the commercial utilization of a portion of the building, the Bangladeshi government will solely recoup the principal amount of the loan, without any financial gain from the commercial activities.

IsDB's previous collaboration with Bangladesh resulted in the construction of a 20-story commercial building and a four-story shopping complex in Agargaon back in 1987. The success of these facilities, which have been utilized for educational purposes, paved the way for IsDB-BISEW's proposal and subsequent loan request for IDB Bhaban-2.

Following the agreement between the Finance Division and IDB-BISEW, the loan's first instalment of Tk60 crore was allocated on March 13, with the remaining amount scheduled for disbursement in two subsequent instalments by July 2025. The loan agreement stipulates a three-year grace period and a repayment period of 13 years, facilitating the gradual repayment of the loan amount over a 10-year period following the grace period.

This strategic partnership underscores Bangladesh's commitment to fostering infrastructural development and bolstering collaborative efforts towards sustainable urbanization. As construction commences on IDB Bhaban-2, it heralds a new chapter in Bangladesh's endeavors to facilitate regional progress and enhance bilateral cooperation with international partners.