Partnering with renowned German and Swiss financial institutions, Prime Bank has made its maiden deal in ECA covered Foreign Currency Term Loan for leading Bangladeshi conglomerate, City Group.
Prime Bank Limited has arranged a foreign currency credit for setting up of the most modern salt plant in the country. Dhaka Salt and Chemicals Limited, a sister concern of City Group, will set up the most advanced free flowing iodized salt manufacturing project at Hoshendi Economic Zone. For City Group, a leading conglomerate of Bangladesh, this is the first ECA covered transaction with a private commercial bank in Bangladesh.
As the arranger, Prime Bank Limited signed an agreement with Landesbank Baden-Württemberg (LBBW) of Germany to avail ECA covered term loan to on-lend the same to Dhaka Salt & Chemicals Limited where Swiss Export Risk Insurance, Zurich, Switzerland (“SERV”) acting as Export Credit Agency (ECA). This is the first ECA covered foreign currency term loan arrangement by Prime Bank which adds to wide range of Wholesale Banking products and services. Prime Bank’s Managing Director and CEO Rahel Ahmed inked the agreement on behalf of Prime Bank Limited while Jens Ruebbert, Managing Director, Regional Head of LBBW in Asia Pacific Region inked the same on behalf of LBBW in a virtual signing ceremony on September 9, 2020. Duringthe signing, Mr. Fazlur Rahman, Managing Director of Dhaka Salt and Chemicals Limited and the Chairman of City Group and Mr. Md. Hasan, Director of City Group were present. In addition to above, Faisal Rahman, DMD & CBO; Shams Abdullah Muhaimin, Head of Structured Finance; Shahbaj Talat, Team Head of Corporate & Institutional Banking from Prime Bank and Marc Schlatter, Head of Export Finance Asia Pacific, Christina Lutz, Swiss Corporates Coverage, Export Finance and Mark Adamovits, Bangladesh Market Coverage, Export Finance from LBBW were present in the signing ceremony.
Commenting on the agreement, Prime Bank’s Managing Director and CEO Rahel Ahmed said: “With reputed German and Swiss companies being as partners, this is an ideal entry into ECA covered foreign currency financing business for Prime Bank. This multi-party agreement involving renowned European counterparts is an example of how international partnership can make a difference when it comes to financing large scale and sophisticated industries. The bank will explore and expand this enhanced structured financing capability in collaboration with globally renowned institutions to cater to evolving financial needs of the clients.”
