BRAC signs unsecured term-loan deal with int'l lenders
Tuesday, 4 December 2007
FE Report
BRAC signed the first unsecured seven-year syndicated term-loan deal of $55 million with two international lenders -- Standard Chartered (StanChart) Bank Bangladesh and RSA Capital in the city Monday.
The syndicated term-loan facility was structured and subscribed by international lenders for a micro-finance institution in the country.
The facility was structured by Standard Chartered Bank and RSA Capital as the joint co-lead arrangers and subscribed and arranged by FMO of Netherlands, Norfund of Norway and KfW Bankengruppe of Germany.
The financing arrangement was aimed at supporting the micro-finance activities of BRAC across the rural areas of the country.
FMO and Norfund are lending $25 million in equivalent Bangladesh taka (BDT) and $10 million in equivalent BDT respectively.
StanChart is lending $20 million in equivalent BDT under guarantee from KfW. The bank will also act as the account bank for the facilities.
This is the first 'one-of-a-kind internationally syndicated unsecured local currency financing arrangement in the country.
The facility will assist BRAC to further expand its micro-finance activities in the rural areas providing much-needed impetus to SME and agriculture sectors during the post-flood and cyclone reconstruction period.
BRAC signed the first unsecured seven-year syndicated term-loan deal of $55 million with two international lenders -- Standard Chartered (StanChart) Bank Bangladesh and RSA Capital in the city Monday.
The syndicated term-loan facility was structured and subscribed by international lenders for a micro-finance institution in the country.
The facility was structured by Standard Chartered Bank and RSA Capital as the joint co-lead arrangers and subscribed and arranged by FMO of Netherlands, Norfund of Norway and KfW Bankengruppe of Germany.
The financing arrangement was aimed at supporting the micro-finance activities of BRAC across the rural areas of the country.
FMO and Norfund are lending $25 million in equivalent Bangladesh taka (BDT) and $10 million in equivalent BDT respectively.
StanChart is lending $20 million in equivalent BDT under guarantee from KfW. The bank will also act as the account bank for the facilities.
This is the first 'one-of-a-kind internationally syndicated unsecured local currency financing arrangement in the country.
The facility will assist BRAC to further expand its micro-finance activities in the rural areas providing much-needed impetus to SME and agriculture sectors during the post-flood and cyclone reconstruction period.