The International Finance Corporation, the private sector arm of the World Bank Group, has invested more than Tk 131 crore to hold 5 percent of local City Bank's shares.

The IFC will pay Tk 28.3 for each share, which includes a premium of Tk 18.3.

Rubel Aziz, chairman of the City Bank; Sohail RK Hussain, managing director of the bank, and Wendy Jo Werner, country manager of IFC, signed an agreement in this regard at the capital's Westin Hotel yesterday.

The City Bank, which is a first generation private bank, has applied to Bangladesh Bank, Bangladesh Securities and Exchange Commission and other relevant regulatory authorities for approval of the equity sale to the IFC.

The IFC provides debt, equity and guarantee products in sectors, including financial markets, infrastructure, agribusiness and manufacturing to help enhance employment opportunities, fuel growth and spur innovation.

The IFC's equity investment ranges between 5 percent and 20 percent of a company's shares, according to its website.

It said equity investments provide developmental support and long-term growth capital that private enterprises need.

The corporation also invests directly in companies' equity and also through private-equity funds.

In the fiscal year ended on June 2015, equity investments accounted for about $3.2 billion of commitments IFC made for its own account.