Bangladesh on Monday signed a $300 million financing agreement with the International Development Association (IDA) of the World Bank Group to implement the Emergency Support for Food Security Project.

The financing amounts to SDR 219.2 million and will support food security by ensuring the availability of eligible fertilisers, particularly for smallholder farmers during planting seasons, according to an Economic Relations Division (ERD) press release.

The project will run from July 1, 2026 to June 30, 2027.

ERD Secretary Md Shahriar Kader Siddiky and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan, signed the agreement on behalf of their respective sides.

The Finance Division will implement the project in coordination with Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Agricultural Development Corporation (BADC).

The financing carries an interest rate of 1.5% a year on the withdrawn credit balance and a maximum commitment fee of 0.50% a year on the undrawn financing balance.

However, the World Bank has waived the commitment fee for Bangladesh for several years, including the current fiscal year.

The financing has a 25-year maturity, including a five-year grace period.

The World Bank is Bangladesh’s largest multilateral development partner, providing financing across sectors including economic and social development, institutional reforms, infrastructure and energy.