Govt approves $440m foreign loan for 9 cosStaff Correspondent
Beximco to raise $350m issuing convertible bonds
A government committee on Thursday approved proposal of nine private companies including Beximco Ltd to take $440 million in foreign loans and convertible bonds.
The private sector foreign loan/supplier’s credit committee, headed by Bangladesh Bank governor Atiur Rahman, approved the loan proposals at a meeting at the central bank headquarters.
According to the proposals, the Bangladesh Export Import Company (Beximco) Ltd will raise $350 million in convertible bonds by appointing Barclays Capital as lead manager.
The bonds would convert into up to 100 million ordinary shares, said Beximco earlier in a notice posted on the Dhaka Stock Exchange website on January 8.
The funds will be utilised for meeting capital expenditure for expansion programs, working capital and repayment of debts, said the company.
Beximco Group vice-chairman Salman F Rahman told New Age on Thursday that the company would raise the funds from foreign institutional investors. ‘The interest rate for the bonds would be up to 8 per cent,’ he said.
The private sector foreign loan committee also approved JMS holding Ltd’s proposal to take $15 million, Color City Ltd’s $20 million, Nestle Bangladesh Ltd’s $ 17 million, Confidence Salt Ltd’s $5.3 million, Crown Polymer Bagging Ltd’s $3.6 million and Nator Agro Ltd’s proposal to take $15 million.
The committee also approved two deferred payment -- $9.45 million for Banglalion and $4.1 million for Energyprima Ltd, said a BB press release.
Committee members, including representatives from the Prime Minister’s Office, finance, commerce and industries ministries and Board of Investment were present.
The highest interest rate of the approved loans is 6-month LIBOR (London Interbank Offered Rate) plus 4.20 per cent. The effective interest rate is within 4.90 per cent, said the BB press release.
The committee hoped that this type of foreign financing would be helpful in keeping the foreign exchange rate stable and would impact positively on the balance of payment situation of the country.
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