HSBC Bangladesh has arranged the country’s first private sector agreement with SERV, Switzerland’s Export Credit Agency, in a transaction securing finance of $46 million, said a news release.
The financing, a combination of commercial term loans and export credit agency-backed lending, was arranged for Viyellatex Spinning Limited to support the purchase of goods, equipment and technology from suppliers based in Switzerland, Japan, India, Germany and the UK.
The loan agreement covers around 70 per cent of the total investment being made by Viyellatex Group for this specific project. The financing also involves extensive and close cooperation between HSBC and PROPARCO, a French financial institution focused on funding sustainability projects, (a subsidiary of Agence Française de Développement) as a lender under the commercial term loans.
HSBC acted as coordinating arranger, lender, facility agent, security agent, intercreditor agent, account bank and sole LC issuing bank.
HSBC Bangladesh chief executive officer 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. It also demonstrates the strength of HSBC’s international network and global banking capabilities.’
Viyellatex Group chairman KM Rezaul Hasanat commented: ‘The facilities will be utilised to set up the expansion project. The project is a strategic investment of Viyellatex Group and aligned with country’s priority sector for economic development. This sort of structured financing will support country’s RMG/textile exporters to undertake quality capex decisions as well as achieve a great mileage in international debt market.’
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