Renata PLC, a leading pharmaceutical company in Bangladesh, plans to secure a $60 million loan from the International Finance Corporation (IFC) to enhance its working capital. This foreign currency loan, equivalent to over Tk700 crore at Tk118 per dollar, aims to manage liquidity for importing raw materials amidst local dollar shortages. The loan terms include a six-year tenure with a one-year grace period and an interest rate below 9%, based on the Secured Overnight Financing Rate (SOFR) plus 3.5%. Renata’s board has approved the agreement, highlighting its strategic move to mitigate foreign currency liquidity risks at lower financing costs compared to local borrowing rates exceeding 13%. Despite facing increased raw material costs due to dollar appreciation-induced inflation, Renata reported a revenue rise to Tk2,781 crore in the July-March period of FY24, up from Tk2,439 crore the previous year. However, its net profit decreased to Tk258 crore from Tk269 crore year-on-year.
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