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

Staff Correspondent

16 September, 2020 12:00 AM printer

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.

Prime Bank Limited has arranged a foreign currency credit for setting up of the most modern salt plant in the country, said a press release.

Dhaka Salt and Chemicals Limited, a sister concern of City Group, will set up the most advanced free flowing iodized salt manufacturing project at Hoshendi Economic Zone. For City Group, a leading conglomerate of Bangladesh, 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 and Chemicals Limited where Swiss Export Risk Insurance, Zurich, Switzerland 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.