Market digest

Prime Bank, ISPAB ink deal finance to ISPs

Staff Correspondent

7 July, 2020 12:00 AM printer

Prime Bank, ISPAB ink deal finance to ISPs

Prime Bank Limited and Internet Service Providers Association of Bangladesh (ISPAB) have joined hands to facilitate financing for entrepreneurs in Internet service.

Prime Bank Managing Director and CEO Rahel Ahmed and ISPAB President Md. Aminul Hakim formally launched the alliance through a virtual press meet on Monday. Minister for Post and Telecommunications Mustafa Jabbar was present as the chief guest, said a press release.

The partnership titled “Prime Bank-ISPAB Alliance for ISP-MSME Financing Solutions” will enable easy access to finance to Internet service providing companies as they strive for market expansion across the country. It will be a big boost for the country’s ISP sector as eligible ISPAB members can now avail collateral free loan up to BDT 50 lakh and other tailor-made financing solutions.

Under the arrangement, the e-commerce firms will get working capital (CC, OD and Demand Loan), Term Loans for Fixed Asset Purchase and Capital expenditures, International Trade solution- LC, LATR, IDBP etc., Bank Guarantee, Work Order etc.

On the occasion, Minister for Post and Telecommunications Mustafa Jabbar said: “With this financing initiative of Prime Bank, the earlier distance between banking and ICT sector has been removed. We believe other banks will follow Prime Bank and extend financing to ISP entrepreneurs. Like immovable property in other business, the knowledge and intellectual property of an entreprener are valuable asset. Young and creative entrepreneurs are bringing in new innovation in ICT industry and injecting dynamism in the economy.”

Commenting on the alliance, Managing Director and CEO, Prime Bank Rahel Ahmed, said: “Prime Bank is fully aligned with the government’s vision of making a Digital Bangladesh as the country sets sight to become a middle income country. Internet service sector is instrumental to the vision of Digital Bangladesh and also key to growth in Digital Banking.”

Prime Bank’s Head of MSME Banking Syed M Omar Tayub, Head of Brand and Communications Nazmul Karim Chowdhury and ISPAB Secretary General Md. Emdadul Hoque were also present.