City Bank arranges Tk 3b credit for petrochemical industry
Tuesday, 2 February 2010
FE Report
City Bank Ltd has arranged a Tk 3 billion credit facility-term loan of Tk 2.24 billion and working capital of Tk 760 million-for Super Petrochemical Ltd.
City Bank is the lead arranger of the loan facility, while Alliance Financial Services Ltd, Agrani Bank, Mutual Trust Bank, National Bank and Pubali Bank will act as co-arranger.
Bangladesh Commerce Bank, Bank Asia, Eastern Bank, IFIC Bank, IPDC, One Bank, Social Islamic Bank, and the State Bank of India are the participants.
An agreement was signed to this effect between the parties concerned at a ceremony in the capital Monday.
Speaking on the occasion, Bangladesh Bank Governor Atiur Rahman said confidence in the country's investment climate has rebounded after witnessing some sort of uncertainty caused by the global economic meltdown.
He said import of capital machinery has increased significantly, which proves that confidence in the investment climate has been restored. "This syndicated loan is also a manifestation of that confidence."
City Bank Managing Director Mahmud Sattar said: "We always support syndication as it divides the risk among the participating financial institutions."
Super Petrochemical Managing Director Salim Khan also spoke.
The first private sector petrochemical venture will process NAPTHA, one of the byproducts of Eastern Refinery Ltd, as the main raw material and will turn it into petrochemical products like aromatics (Xylene), high octane gasoline, LPG and various other solvents.
The finished products of the project will act as import substitute and will save a huge amount of foreign currency.
City Bank Ltd has arranged a Tk 3 billion credit facility-term loan of Tk 2.24 billion and working capital of Tk 760 million-for Super Petrochemical Ltd.
City Bank is the lead arranger of the loan facility, while Alliance Financial Services Ltd, Agrani Bank, Mutual Trust Bank, National Bank and Pubali Bank will act as co-arranger.
Bangladesh Commerce Bank, Bank Asia, Eastern Bank, IFIC Bank, IPDC, One Bank, Social Islamic Bank, and the State Bank of India are the participants.
An agreement was signed to this effect between the parties concerned at a ceremony in the capital Monday.
Speaking on the occasion, Bangladesh Bank Governor Atiur Rahman said confidence in the country's investment climate has rebounded after witnessing some sort of uncertainty caused by the global economic meltdown.
He said import of capital machinery has increased significantly, which proves that confidence in the investment climate has been restored. "This syndicated loan is also a manifestation of that confidence."
City Bank Managing Director Mahmud Sattar said: "We always support syndication as it divides the risk among the participating financial institutions."
Super Petrochemical Managing Director Salim Khan also spoke.
The first private sector petrochemical venture will process NAPTHA, one of the byproducts of Eastern Refinery Ltd, as the main raw material and will turn it into petrochemical products like aromatics (Xylene), high octane gasoline, LPG and various other solvents.
The finished products of the project will act as import substitute and will save a huge amount of foreign currency.