Agrani Bank signs deal with PrimaDollar

PrimaDollar and Agrani Bank Limited (ABL) have agreed to cooperate in the provision of international trade finance services to exporters across Bangladesh, according to a statement.

A joint venture agreement was signed in this regard by Managing Director & CEO of Agrani Bank Limited Mohammad Shams-Ul Islam and CEO of PrimaDollar Group, UK Tim Nicolle recently.

The deputy managing directors of Agrani Bank Limited Md. Yusuf Ali, Md. Khairul Kabir, S.M. Nurul Ahsan and General Manager & Head of International Division Mahmudul Ameen Masud were present on behalf of Agrani Bank Limited.

Syed Abu Naser Bukhtear Ahmed, non-executive chairman, MS Siddiqui, senior advisor and Nasrat Ahmed Khan, chief executive, PrimaDollar Bangladesh were present on behalf of PrimaDollar.

Under the terms of the agreement, it is envisaged that customers of ABL will be able to work on open account ("sales contract") with their international buyers and offer deferred payment terms (60, 90, 120 days) and receive pre-shipment facilities from ABL without asking their creditworthy international buyers for a letter of credit. They will also get paid by ABL at shipment on presentation of documents. ABL, via its relationship with PrimaDollar, will collect from the buyer at term and will take the buyer's credit risk, the statement said.

This solution will help the export community of Bangladesh to compete on equal terms with exporters from other countries without taking additional risks. In addition, export transactions which are organised without international letters of credit are simpler, quicker and cheaper to realise for all parties.

Agrani Bank Limited is recognised as the provider of export finance solutions in Bangladesh, supporting over US$4.0 billion in export volumes in 2017.

PrimaDollar is a British-based global trade finance company. PrimaDollar is registered in the UK with the Financial Conduct Authority, the principal UK financial regulator. In Bangladesh, PrimaDollar operates under the permission of the Bangladesh Investment Development Authority, the statement added.