The Asian Infrastructure Investment Bank (AIIB) is providing a $200 million loan to Bangladesh for expanding and revitalizing investment in the private infrastructure sector through long-term financing.
Assuming Tk 86 per dollar, the amount of this credit in Bangladeshi currency stands about Tk 1,720 crore, according to a press release of ERD issued on Sunday. The loan was provided by Infrastructure Development Company Limited (IDCOL) for its Multi-Sector on Lending Facility project.
Under the project, the government of Bangladesh and AIIB have respectively signed the loan agreement.
Shahriar Kader Siddiqui, additional secretary to the Department of Economic Relations on behalf of the Government of Bangladesh and Dong LK Lee, Director General (Investment Operations) of AIIB, signed the deal on behalf of the company.
The main objective of this project is to expand investment in the infrastructure sector in Bangladesh through long-term financing, the release said.
This objective is filling the infrastructural deficit and achieving sustainable growth cited in the Bangladesh Perspective Plan 2021-2041.The loan taken from AIIB for the implementation of this project will again be handed over to IDCOL by the government in Bangladesh.
Then IDCOL will then provide this money as a loan for implementation of private sector infrastructure development projects.
The project will provide additional funding for IDCOL, which will help meet the long-term financing requirements of the country’s infrastructure sector.
The loan taken for this project has to be repaid in 18 years with a grace period of five years.
For this loan the government has to pay 0.25 percent as front end fee and 0.25 percent as commitment fee annually on unspent money.
The interest rate of this loan is set at 0.60 percent.
