Biman to avail $117m pool loan for aircraft purchase
Friday, 4 December 2009
Sheikh Shahariar Zaman
Bangladesh Biman is going to borrow US$117 million syndication loans from local banks for aircraft procurement.
Mutual Trust Bank (MTB) is taking part in the pool lending and willing to lend up to $25 million to the national flag carrier, Anis A Khan, managing director of the bank told the FE on Thursday.
"The syndication will be led by Eastern Bank and individual bank contribution will be fixed by this month and the whole lending process is expected to be finalised by January," he said.
"MTB has received the offshore banking unit (OBU) licence today and the foreign currency loan will be given from the unit," Mr Anis said.
OBU is a wing of a bank which can transact only in foreign currency and lend to export-oriented industries at a much lower interest rate than that of local currency rate.
"The interest rate will be London Interbank Offered Rate (LIBOR) plus something and it is expected that it will be as low as 5 to 6 per cent," he said.
Bangladesh Biman is going to borrow US$117 million syndication loans from local banks for aircraft procurement.
Mutual Trust Bank (MTB) is taking part in the pool lending and willing to lend up to $25 million to the national flag carrier, Anis A Khan, managing director of the bank told the FE on Thursday.
"The syndication will be led by Eastern Bank and individual bank contribution will be fixed by this month and the whole lending process is expected to be finalised by January," he said.
"MTB has received the offshore banking unit (OBU) licence today and the foreign currency loan will be given from the unit," Mr Anis said.
OBU is a wing of a bank which can transact only in foreign currency and lend to export-oriented industries at a much lower interest rate than that of local currency rate.
"The interest rate will be London Interbank Offered Rate (LIBOR) plus something and it is expected that it will be as low as 5 to 6 per cent," he said.