The Bank's clients can avail one-year liquidity support for payment of wages, utilities and other operational expenses under this programme, with a moratorium period of 3 months. More than 20,000 workers received their multiple months salaries and festival bonuses on time through these loans.
As the COVID-19 pandemic struck in 2020, the apparel supply chain across the world was disrupted. Retail stores shut down across the US, UK, Germany and other key markets, resulting in deferment and cancellation of orders which impacted RMG exporters in Bangladesh as well. Standard Chartered remained focused on supporting the resilience of the Country's RMG sector, by enabling access to liquidity amidst this unprecedented scenario. The Bank leveraged its international network to collaborate with select large global buyers and swiftly arranged regulatory approvals to introduce a unique USD-denominated pre-shipment finance loan.
The facility enabled easy access to funds for salary and other operating expenses, USD-denominated facility low cost financing with natural hedge against currency volatility and extended tenor of one year which includes a three-month moratorium, giving the clients much needed flexibility in an uncertain operating environment
Standard Chartered leveraged its long-standing relationship with many of the top retailers and strong working relationship with the BGMEA and Bangladesh Bank to lead this collaborative effort to stand by the RMG industry with timely solutions.
Fakir Kamruzzaman Nahid, Managing Director of Fakir Fashions Ltd., a recipient of the facility said, "The impact of the pandemic on the lives, livelihoods and the overall economy cannot be overstated. At a time like this, the USD based Pre-Shipment Loans introduced by Standard Chartered offered us a chance to reduce our financial expenses as well as cement our longstanding relationship with our buyer. Standard Chartered used their network's strength to collaborate with our major buyers and gave us this low-cost USD funding, with the flexible option to repay over a year with moratorium. During this pandemic, the promptness, efficiency and commendable effort of the Standard Chartered team has proven that the Bank understands the requirements of our industry."
M Shahadat Hossain, Chairperson of Dekko Legacy Group, another beneficiary of the facility, said, "COVID-19 is something which totally left us unprepared, especially during the initial months in 2020. Ours is an industry which deals with tight deadlines, massive workers and unpredictable buyers. So when we received support from the government's stimulus package, it was a big relief. The USD based Pre-Shipment Financing from Standard Chartered also helped us to manage payments beyond the period Government has supported. We were able to reduce our financial expenses as well as create an additional support in the cashflow. This was a very innovative initiative by Standard Chartered. Also, the way it is structured, with the moratorium, gives us more flexibility. I want to sincerely thank the Standard Chartered team for coming forward during this stressful time."
Naser Ezaz Bijoy, Chief Executive Officer, Standard Chartered Bank, Bangladesh, said "Standard Chartered Bank prides itself on the Here for Good promise, and there has never been a more important time to deliver on that promise. I am extremely grateful for the timely support we got from Bangladesh Bank to offer these low interest USD denominated loans to our exporter clients. As the largest international bank in the country, with our unique global network and our relationship with buyers, we had an important role to play during this crisis. The RMG sector continues to be the life blood of Bangladesh economy and I happy and proud that our initiatives were able to support the sector in its time of need."
SCB partners with global RMG buyers
FE Team | Published: November 23, 2021 00:06:09
SCB partners with global RMG buyers
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