HSBC Bangladesh has arranged $46 million in low-cost foreign currency for apparel exporter Viyellatex for the purchase of goods, equipment and technology from suppliers in Switzerland, Japan, India, Germany and the United Kingdom for a new spinning mill. The loan covers 70 per cent of the total investment being made by the Viyellatex Group in this project. The bank said this was the country‘s first private sector agreement with Swiss Export Risk Insurance SERV (Switzerland’s export credit agency).
Viyellatex Group is providing the rest of the $75 million (nearly Tk 600 crore) being invested in the spinning mill project.
Viyellatex Group chairman KM Rezaul Hasanat said, “Interest rate of the loan is much lower than other US dollar loans in the international market. The spinning mill has already been constructed and commercial production is to begin September 2017 onward”, he added.
Hasanat said that Viyellatex Group was proud to receive this international financing package from HSBC. Containing 92,000 spindles, the spinning mill will produce 50 tonnes of yarn per day to meet the growing demand in the local market he added.
The financing involves cooperation between HSBC and Proparco, a French financial institution focused on funding sustainable development projects.
HSBC Bangladesh CEO Francois de Maricourt said, “This transaction highlights HSBC’s leading position in export credit agency financing in Bangladesh, and demonstrates the growing relevance of ECAs for the local private sector.”
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