World Biz
IPDC gets conditional approval for €15m loan from German DEG
With the help of Standard Chartered Bank as a middleman, the Bangladesh Bank (BB) has granted IPDC Finance Ltd. conditional permission to get a long-term loan of €15 million from the German company Deutsche Infestations-und Entwicklungsgesellschaft (DEG).
IPDC would have to renegotiate the terms of the foreign currency loan in order to comply with the restrictions.
Mominul Islam, managing director and chief executive officer (CEO) of IPDC Finance, stated that IPDC was in discussions to receive the financing at a variable interest rate that would be based on the benchmark London interbank rate. The central bank has, however, requested that the rate not exceed 4.2pc, which is less than the agreed-upon figure.
According to the CEO, IPDC will use the loan amount for SMEs, women’s empowerment, and green financing if the renegotiation gets fruitful.
Moreover, the Bangladesh Bank has mandated that the maximum interest rate on loans issued by IPDC not exceed 10pc. Within 60 days of approval, IPDC must receive the money from DEG; the loan is intended to have a six-year tenure. If the renegotiation fails, the loan may not be granted because of the central bank’s requirement that the interest rate is lowered.
South Asian Stock Markets dropped last week. Among them, the biggest fall was in the stock markets of India and Pakistan.
A review of South Asian markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has dropped 1,146 points during the week. At the end of the week, the index stood at 57,989 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 312 points last week. At the end of the week, the index stood at 17,412 points.
Pakistan Stock Exchange Index ‘KSE 100’ lost 464 points last week. After a week of losing, the index settled at 41,329 points.
On the hand The Sri Lankan stock market hiked, the Colombo Stock Exchange index ‘ASPI’ gained 64 points in a week. After a week the index settled at 9,670 points.
Bhutan’s stock market index ‘BSI’ hiked by 21 point and the index stood at 1,104 points throughout the whole week. Nepal’s ‘NEPSE’ lost 69 points last week, as the index stands at 1,933 points.
LABCCi: The Latin America-Bangladesh Chamber of Commerce and Industry signed a Memorandum of Understanding (MoU) with Bangladesh Investment Development Authority (BIDA) to boost trade and investment between Bangladesh and Latin America.
Bida Executive Chairman (Senior Secretary) Lokman Hossain Miah attended as the chief guest at the MoU signing ceremony held at the Bida office in the capital on Wednesday (15 March).
LABCCI President Md Anwar Shawkat Afser and Bida Marketing and Communication Executive Member (Additional Secretary) Md Matiur Rahman signed the MoU on behalf of their respective sides.
At the ceremony, the Brazilian Embassy in Dhaka Commercial Specialist Nahid Ferdousi assured that Brazil is very much interested in tying up with Bangladesh in all aspects.
Md Anwar Shawkat Afser said that a new era has been started by the MoU signing ceremony.
“LABCCI now got the affiliation from the Prime Minister’s Office of Bangladesh, Bida. Now business societies from Latin American countries may get more confidence to invest and trade in Bangladesh through the collaboration of LABCCI,” he said.
The LABCCI president highlighted the upcoming event “Bangladesh Investment B2B (Business to Business) Event in Latin America 2023” which will be jointly organised by Bida, DBCCI and LABCCI in the Netherlands, Belgium, Luxembourg, Argentina and Brazil on 6-17 March 2023.
Representatives from the ministries of foreign affairs and commerce, Bida, Beza, Hi-Tech Park Authority and high-profile Bangladeshi and European businessmen will participate in the mega event.
Salman Fazlur Rahman, private industry and investment advisor to the prime minister, will lead the delegation in the Netherlands, Belgium, Luxembourg, Argentina and Brazil.
Bida Executive Chairman Lokman Hossain Miah assured full support for this delegation, saying that the present government led by Prime Minister Sheikh Hasina created a friendly environment for businessmen as EPZs will provide a safe zone for foreign investors in Bangladesh.
In the last 15 years, Bangladesh’s economy has changed dramatically. People’s incomes have increased and their lives have improved. By 2027, another 3.5 million people will enter the middle class, he added.
“Bangladesh is not only a huge domestic market of 17 crore people, but with proper investment, the consumer market of about 300 crores in South Asia including India and China can be accessed from here,” said the Bida executive chairman, adding that Bangladesh is one of the top safe investment destinations in the world.
He appreciated the LABCCI board of directors for their initiative to attract FDI from the Latin America region as well as from Europe.
One of the listed companies in Bangladesh SM Fintech Limited has received $1.4 million (14 crores 75 lahks 92 thousand 760 takas) in foreign investment from Hong-Kong, China-based venture capital firms.
S M Fintech is a well-known technology-based financial services company, its mobile app ‘Crediee’. which is mainly used as a credit scoring engine, from which a user can apply for loan from their house. Many lending firms carry out risk assessments, credit worthiness checking of their users.
Another mobile app ‘Myne’, from which a user can take financial services in advance against the salary of the workers who work in private firms in case of urgency or emergency.
However, S M Fintech has penned an agreement as a financial institution with Bangladesh Finance and Ambala Foundation Limited.
Managing Director and CEO of the company, Arif Shikder told, we have developed this service by keeping in mind the financial needs of the people in Bangladesh, here we want to establish a connection between the local people of Bangladesh and the Institutional lending institutions.
