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PBL pioneered loan syndications initiatives in March 1999 through launching the Syndications and Structured Finance Unit (SSFU)

PBL pioneered loan syndications initiatives in March 1999 through launching the Syndications and Structured Finance Unit (SSFU)

Facility

At present, PBL is also working as agent for 16 (sixteen) number of syndicated deals and handling total credit portfolio of Tk 17 lac of more than 35 (thirty five) syndicated customers, where Prime Bank’s exposure is Tk 9 lac (funded 7 lac and non-funded Tk 1 lac) (approx.) (Source: Bangladesh Bank, “Decade of Loan Syndications”

Its success story till close of business includes putting in place over BDT 1,150 million for 22 projects as a lead arranger. To mark a decade of loan syndications journey, the bank organized a gala celebration event on that witnessed:

Presided over by Prime Bank Managing Director M Shahjahan Bhuiyan, the ceremony was attended by Prime Bank Limited Board of Directors Executive Committee Chairman Imam Anwar Hossain as the chief guest and BRAC Executive Director Abdul Muyeed Chowdhury as the guest of honour.

The syndicated term loan has been sanctioned for the micro-credit lending programme of BRAC, which is one of the world’s largest non-government organisations (NGOs) operating in the country. By arranging this syndicated term loan facility, Prime Bank Limited has created an opportunity for local and foreign commercial banks to demonstrate their shared commitment to meet the challenge of the International Year of Microcredit, 2005.

Prime Bank Limited deputy managing directors Nasiruddin Ahmed, Mahbubul Alam and Kazi Masihur Rahman along with other executives and officials of BRAC and the participating banks were also present in the ceremony.

Term loans provided by the financial system in Bangladesh amount to only about US$250-300 million per year, equivalent to about 1.5 percent of Gross Domestic Product (GDP), while private and public investment amounts to about 16 percent of GDP. A major constraint to the provision of term loans is the lack of a well developed long-term savings market. Nationalized Commercial Banks (NCBs) fund their term loans mainly with their deposits creating a maturity mismatch.

Proper Syndication Loan Procedure examines the needs of both borrowers and lenders involved in the design, origination, arrangement, distribution and management of syndicated loans and link the process of executing a successful deal to the optimal design of a syndication unit. For the following reason financial institutions can go syndicated loan market.

Prime Bank Arranges Tk 2Bln syndicate Term Loan for BRAC A syndicated term loan agreement for Tk 2 billion (Tk 200 crore) favouring BRAC was signed recently at a city hotel under the lead arrangement of Prime Bank Limited

  • The entry of financial institutions into the corporate loan market has helped improve the transparency and liquidity of the secondary loan market, at the expense of increased overall loan borrowing costs.

Prime Bank online title loans New Jersey Arranges Tk 2Bln syndicate Term Loan for BRAC A syndicated term loan agreement for Tk 2 billion (Tk 200 crore) favouring BRAC was signed recently at a city hotel under the lead arrangement of Prime Bank Limited

  • As the large investment is increasing day to day, borrower needs fund without minimum transaction hassle with minimum funding cost. Government also restricted the funding limit of the financial institutions. In this situation loan syndication seems a better solution for both the borrower and loan provider.

Prime Bank Arranges Tk 2Bln syndicate Term Loan for BRAC A syndicated term loan agreement for Tk 2 billion (Tk 200 crore) favouring BRAC was signed recently at a city hotel under the lead arrangement of Prime Bank Limited

  • Most important issue is the risk associated with big projects. These types of risks can be minimized by evaluating properly and monitoring regularly the projects and with the borrowers.

Prime Bank Arranges Tk 2Bln syndicate Term Loan for BRAC A syndicated term loan agreement for Tk 2 billion (Tk 200 crore) favouring BRAC was signed recently at a city hotel under the lead arrangement of Prime Bank Limited

  • Most prospective and large investment sectors in Bangladesh are Power, Telecom Textile Industries, Steel Mills, Cement, Sugar Mills, Private Container Terminal, Gas Evaporation Project, Infrastructure Development Projects, School Hospital through foreign joint venture, Information Communication Technology etc.

Prime Bank Arranges Tk 2Bln syndicate Term Loan for BRAC A syndicated term loan agreement for Tk 2 billion (Tk 200 crore) favouring BRAC was signed recently at a city hotel under the lead arrangement of Prime Bank Limited

  • After phasing out of Multi Fiber Agreement (MFA) our country is realizing more intensely the importance of backward linkage industry to support and sustain our garments sector in the face of emerging harsh competition because through this phase out garments industry will loose their protected market to other competitors of the region. Garments sector contributes 36 % of the total export-earnings of the country.

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