Revised Pricing Terms of USD and EURO Financing under Green Transformation Fund

The pricing terms for US Dollar and Euro financing under the Green Transformation Fund are fixed at 5% per annum, comprising a 2% per annum margin for Bangladesh Bank and a 3% per annum mark-up for Authorized Dealers. This revised rate is effective from July 1, 2023, replacing previous arrangements in light of LIBOR cessation and global interest rate trends. All other instructions regarding the fund remain unchanged.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular Letter No. 13 Date: September, 26, 2023 All Authorized Dealers of Foreign Exchange in Bangladesh Dear Sir, Revised Pricing terms of USD and EURO financing under Green Transformation Fund (GTF). Please refer to FE Circular No. 02, dated January 14, 2016 and subsequent circulars/circular letters in terms of which Bangladesh Bank operates Green Transformation Fund (GTF) in US Dollar and Euro for extending loans to Authorized Dealers (ADs) for onlending/re-financing to eligible borrowers to implement specified green/environment-friendly initiatives. Given the global context of LIBOR cessation/discontinuation from 30th June, 2023 and rising interest rate trend in US Dollar and EURO financing globally, the pricing terms of US Dollar and EURO financing from Green Transformation Fund (GTF) has been fixed at 5% p.a. (Bangladesh Bank’s margin 2% p.a. and ADs mark-up 3% p.a.). The revised pricing is deemed to be effective from 01st July, 2023 and other instructions in this context shall remain unchanged. Please bring the contents of this circular letter to the notice of all your concerned constituents. Yours faithfully,

Md. Sarwar Hossain
Director (FEPD)
Phone: 9530123

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This document amends: FEPD Circular No. 02: Green Transformation Fund for export oriented textile and leather manufacturing industries

Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works