City Bank arranges long-term financing for Bangla Trac PP

Staff Correspondent

18 July, 2021 12:00 AM printer

City Bank arranges long-term financing for Bangla Trac PP

City Bank Additional Managing Director Sheikh Mohammad Maroof, BTP1 Director (Technical) Zainal Abedin and PPP Cluster Head (Public Sector) Mohammad Jahangir Alam sign an agreement in the capital recently.

City Bank arranged long-term financing to set up a high speed diesel (HSD) fired power plant for Bangla Trac Group recently.

The Bangla Trac Power Plant (PP) Unit 1 Limited (BTP1) has a capacity of 200 MW that is located at Daudkandi in Cumilla, said a press release.

Under the syndication arrangements, City Bank has arranged long term facilities totaling Tk 3,420 million and US$ 25 million from Shahjalal Islami Bank Limited, NRB Commercial Bank Limited, The City Bank Limited, Islamic Finance and Investment Limited, IDLC Finance Limited and Mashreq Bank - one of the leading financial institutions in the United Arab Emirates.

As part of this syndication, Mashreq Bank has provided long-term funding of US$ 25 million towards the BTP1.

Under the arrangement, City Bank has provided a standby letter of credit (SBLC) Guarantee to Mashreq Bank, amounting to US$ 25 million, as security for the Bangla Trac Group’s project.

The signing of loan agreement took place at head offices of Mashreq Bank (Dubai, UAE), City Bank (Dhaka, Bangladesh) and BTP1 (Dhaka, Bangladesh).

Sheikh Mohammad Maroof, Additional Managing Director, City Bank, Zainal Abedin, Director, Technical, BTP1, Mohammad Jahangir Alam, Cluster Head, Public sector, PPP and Service sector, City Bank and Mahbub Jamil, Head of Structured Finance, City Bank signed the agreement.

Iqbal H Khanyari, Senior Vice President, Head of ICD and Islamic Banking, Mashreq Bank, Ali Asghar Hamid, Vice President, Senior Relationship Manager, ICD and Islamic Banking, Mashreq Bank, M Jahangir Alam, Group CEO, Bangla Trac Group, Fahad Mahmud Islam, CFO, Bangla Trac Group were also present on the occasion.