Prime Bank ventures into ECA-covered term loan for City Group

Partnering with renowned German and Swiss financial institutions, Prime Bank Limited has made its maiden deal in ECA-covered Foreign Currency Term Loan for a leading Bangladeshi conglomerate, City Group, says a statement.

The Prime Bank has arranged a foreign currency credit for setting up of the most modern salt plant in the country.

Dhaka Salt and Chemicals Limited, a sister concern of City Group, will set up the free flowing iodized salt manufacturing project at Hoshendi Economic Zone. For City Group, this is the first ECA-covered transaction with a private commercial bank in Bangladesh.

As the arranger, Prime Bank Limited signed an agreement with Landesbank Baden-Württemberg (LBBW) of Germany to avail ECA-covered term loan to on-lend the same to Dhaka Salt & Chemicals Limited where Swiss Export Risk Insurance, Zurich, Switzerland ("SERV") acting as Export Credit Agency (ECA).

This is the first ECA-covered foreign currency term loan arrangement by Prime Bank which adds to wide range of Wholesale Banking products and services.

Prime Bank's Managing Director and CEO Rahel Ahmed and Jens Ruebbert, Managing Director, Regional Head of LBBW in Asia Pacific Region, inked the agreement in a virtual signing ceremony recently.

During the signing, Fazlur Rahman, Managing Director of Dhaka Salt and Chemicals Limited, and the Chairman of City Group, and Md. Hasan, Director of City Group, were present.