Regulatory Alerts2016-01-14
Added · Updated
FEPD Circular No. 02: Green Transformation Fund for export oriented textile and leather manufacturing industries
Bangladesh Bank establishes a USD 200 million revolving Green Transformation Fund to provide financing to Authorized Dealers for on-lending to eligible exporters in the textile and leather sectors for green initiatives. Authorized Dealers must maintain non-performing loans below 10 percent and possess adequate risk management capacity to participate, while bearing all associated lending risks. Loans are priced at six-month USD LIBOR plus 2.25 percent, with tenors ranging from 5 to 10 years including a one-year grace period, and are restricted to capital machinery imports for specified environmental improvements. The circular prohibits financing for loan defaulters, enterprises owned by Board Members of the Authorized Dealers, and re-financing of loans disbursed prior to the circular's issuance.