The loan has a 40-year maturity time and a grace period of 10 years with a 0.75% service charge.
The credit for the Rural Electricity Transmission and Distribution Project (T&D) will help 25 million rural people get electricity.
Under the project, new lines and new substations will be constructed and the current substations will be upgrade in the rural areas of Chittagong, Dhaka, and Sylhet divisions.
The Bangladesh Rural Electrification Board and the Power Grid Company of Bangladesh will implement the project, which the bank says will reduce technical losses in the rural grid electricity system and increase energy availability to consumers.
World Bank Bangladesh acting head Christine Kimes said only 42% of the rural population currently has access to electricity in Bangladesh, leaving about 13 million rural households without electricity.
"By improving efficiency of the system so that more electricity can reach rural areas, the project will contribute towards increasing economic activity and reducing poverty in the rural areas of Bangladesh," Kimes said.
