Foreign funds amounting to $40 million was arranged by Dhaka Bank at a cheap interest rate for Chandpur Power Generations.
The funds were provided to Dhaka Bank by two banks in Germany in Commerzbank AG and AKA Ausfuhrkredit-Gesellschaft mbH, after which the lender disbursed the funds to the power company. The fund, covered by the global credit guarantee company Euler Hernes, is the first ever loan for Dhak Bank under the export credit agency (ECA).
ECA is viewed as an intermediary between governments and exporters to issue guarantees for financing.
Dhaka Bank signed an agreement with the two German banks on June 7 to avail the fund.
According to Emranul Huq, the bank’s managing director, stated that the move enabled Dhaka Bank to expand its footprint in the international financial market and widen its spectrum of operation in structured financing.
“The client has also availed the fund at a cheaper rate than the rate offered by local banks,” he said.
Chandpur Power Generations is a 115 MW heavy fuel oil based power plant which is now under implementation in Chandpur.
The project will be an IPP (independent power producer) for 15 years.