Partnering with renowned German and Swiss financial institutions, the Prime Bank has made its maiden deal in Export Credit Agency (ECA) covered foreign currency term loan for leading Bangladeshi conglomerate City Group.
The bank has arranged this foreign currency credit for setting up the business group's 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, said a press statement issued on Monday.
For City Group, a leading conglomerate in the country, this is the first ECA covered transaction with a private commercial bank.
As the arranger, the Prime Bank signed an agreement with Landesbank Baden-Württemberg (LBBW) of Germany to avail of the ECA covered term loan to on-lend the same to Dhaka Salt and Chemicals Limited where Swiss Export Risk Insurance, Zurich, Switzerland (SERV) acts as the export credit agency.
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.
Rahel Ahmed, managing director of Prime Bank inked the agreement on behalf of the bank 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.
During the signing ceremony, Fazlur Rahman, managing director of Dhaka Salt and Chemicals Limited and the chairman of City Group and Md Hasan, director of City Group were present.
Commenting on the agreement, 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," he added.
"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," he continued.