Accord signed: Rahimafrooz Globatt to launch operation by May
FE Report | Tuesday, 10 March 2009
Islamic Corporation for Development (ICD), private sector lending arm of the Islamic Development Bank (IDB) will provide US$5.30 million to Rahimafrooz, a leading local conglomerate, to set up a battery manufacturing plant in the country.
An accord was signed between ICD represented by its executive director Fawaz Abdul Nour and Munawar Misbah Moin, managing director of Rahimafrooz Globatt, the newest venture of the Rahimafrooz to this effect in the capital Monday.
This is the first time that ICD has extended financing support to a private sector company in Bangladesh.
The total cost of the battery manufacturing project is $14.5 million of which ICD will provide $5.3 million and HSBC $2.0 million.
"The interest rate comprised of LIBOR plus discount is now less than 5 per cent," Mr Munawar said.
Rahimafrooz Globatt chairman Feroz Rahim said it is the newest venture of the group and it is expected to be operational by May.
The plant, located in Ishwardi export processing zone, has the capacity to produce 2.5 million units and it will be the largest battery export plant in South Asia.
The total turnover of the group is about Tk 1,400 crore with diversified operations and it is engaged in four major business domains - storage power, retail, energy and automotive after market, Mr Feroz said.
Executive director of ICD Fawaz Abdul Nour said he was happy to start financing in Bangladesh.
HSBC chief executive officer Sanjay Prakash said his bank would work in the area of increasing export competitiveness.
"HSBC has financed many exporters and would like to expand its operations in non-traditional export items," he said.
Board of Investment executive chairman Kamaluddin Ahmed said the government has put much emphasis on private-public partnership.
An accord was signed between ICD represented by its executive director Fawaz Abdul Nour and Munawar Misbah Moin, managing director of Rahimafrooz Globatt, the newest venture of the Rahimafrooz to this effect in the capital Monday.
This is the first time that ICD has extended financing support to a private sector company in Bangladesh.
The total cost of the battery manufacturing project is $14.5 million of which ICD will provide $5.3 million and HSBC $2.0 million.
"The interest rate comprised of LIBOR plus discount is now less than 5 per cent," Mr Munawar said.
Rahimafrooz Globatt chairman Feroz Rahim said it is the newest venture of the group and it is expected to be operational by May.
The plant, located in Ishwardi export processing zone, has the capacity to produce 2.5 million units and it will be the largest battery export plant in South Asia.
The total turnover of the group is about Tk 1,400 crore with diversified operations and it is engaged in four major business domains - storage power, retail, energy and automotive after market, Mr Feroz said.
Executive director of ICD Fawaz Abdul Nour said he was happy to start financing in Bangladesh.
HSBC chief executive officer Sanjay Prakash said his bank would work in the area of increasing export competitiveness.
"HSBC has financed many exporters and would like to expand its operations in non-traditional export items," he said.
Board of Investment executive chairman Kamaluddin Ahmed said the government has put much emphasis on private-public partnership.