Sovereign Infrastructure Group (“SIG”) and Bangladesh Finance and Investment Company (“BD Finance”) signed a Memorandum on Thursday for serving as a long-term, best-efforts collaboration framework to enable SIG to mobilize U.S. capital market investors into Bangladesh infrastructure projects through BD Finance.
The signing ceremony was hosted by the Embassy of Bangladesh in Washington, DC.
Md. Kyser Hamid, Managing Director and CEO of BD Finance, and Lerry Knox, Co-Founder and CEO of SIG, signed the memorandum earlier on behalf of their respective parties.
With a project pipeline of more than $2 billion, BD Finance has mandated SIG on the following initial financing: direct senior loan of $40 million to be used for on-lending to Small and Medium Enterprises (“SMEs”), green energy projects, women entrepreneurs, social housing, economic empowerment initiatives for transgender individuals, and the refinancing of existing BD Finance obligations.
Earlier the content of the memorandum was executed on March 17 this year. The contents include SIG and BD Finance agree that there are synergies between their businesses and that such synergies present opportunities for certain partnerships between SIG and BD Finance.
The purpose of the Memorandum is to establish a general collaboration framework between SIG and BD Finance to regulate the activities and relationships that each consider to be of mutual interest.
SIG and BD Finance intend to work together to mobilize global capital market investors into Bangladesh.
In the event that SIG maintains at least four percent (4%) of shares in BD Finance during the term of the Memorandum, SIG shall be guaranteed a position on the board of directors of BD Finance.
Addressing on the oiccasiuon Lerry Knox, Co-Founder and CEO, Sovereign Infrastructure Group, said “SIG was founded to bridge the global infrastructure investment gap by mobilizing U.S. institutional investor capital into growth markets such as Bangladesh. Bangladesh is a top priority for SIG. As a member of the Next 11, Bangladesh is one of the fastest growing economies in the world and is the 8th largest country by population. Bangladesh is currently on track to invest an impressive $417 billion in infrastructure by 2040. Through our engagement with BD Finance, SIG hopes to play a leading role with our partners to support the country’s tremendous growth. The Memorandum between SIG and BD Finance lays the framework for our collaboration. We are honored to sign this Memorandum with BD Finance and look forward to many years of contributing to Bangladesh’s economic growth.”
Manwar Hossain, Chairman, BD Finance said ” This is our way of celebrating the Bangladeshi 50th birthday, working hard and excelling in what we are supposed to do.”
Manwar further said “we are committed to make lending very competitive and borrowing very affordable.”