Dhaka, Bangladesh (BBN)– Local and multinational companies operating in the country will be able to get US$440 million more loans from the overseas sources shortly to help expand their business activities, officials said.
The cases for their obtaining loans were approved at a meeting of the scrutiny committee for approval of foreign loans held in the central bank in the capital Dhaka on Thursday with Bangladesh Bank Governor Atiur Rahman in the chair.
The central bankers expect that all the funds will be received from the overseas sources within the next three months.
Of the approved loans, Bangladesh Export Import Company (BEXIMCO) Limited will receive $350 million through issuing convertible bonds against its shares, a BB official, who is working at the foreign loan security desk in the Board of Investment, told BBN, adding that Barclays Capital Plc will act as the lead manager of the bonds.
“Barclays Capital will arrange the fund from Singapore market,” the BB official said that the shares of BEXIMCO Limited will be traded in the Singapore Stock Exchange after the sale of the convertible bonds.
Besides, the committee approved six other cases of external loans — $15 million for JMS Holdings Limited, $20 million for Color City Limited, $17 million for Nestle Bangladesh Limited, $ 5.3 million for Confidence Salt Limited, $3.6 million for Crown Polymer Bagging Limited and $15 million for Natore Agro Limited.
Furthermore, the committee cleared two proposals relating to deferred payments — one of $ 9.45 million for Banglalion and $ 4.1million for Energyprima Limited.
“Overseas borrowing of corporate houses has increasingly become popular because of lower rate of interest and easier processing,” another BB official said, adding that the average highest interest rate of the loans is six-month LIBOR+4.00 per cent, which is no more than 5.00 per cent.
“Such foreign funding will be helpful to keep the country’s foreign exchange market stable. It will also help to improve the balance of payments situation,” the central banker noted.
 
BBN/SSR/AD-20Apr12-4:10 pm (BST)