18 firms seek $184m in foreign loans

Some 18 private companies in steel, garment and pharmaceutical sectors have sought $184 million loans in foreign currency.
The applications are now sitting with the foreign loan selection committee of the Board of Investment for approval.
Abul Khair Steel, which provides complete solutions to customers in structural steel, has sought $50 million from the offshore unit of AB Bank to import capital machinery and equipment for expansion of existing plants and refinance the local currency loan.
It also intends to establish a steel melting plant with a daily capacity of 10 lakh tonnes at Abul Khair Group's industrial cluster at Sitakunda in Chittagong. The proposed project is an expansion of the company's existing re-rolling plant.
The rate of interest on the loan will be 4.5 percent to be repaid within five years from the first date of drawdown in 10 equal half-yearly instalments.
Titas Refinery has sought permission to enter into a foreign loan facility agreement with Cartwright Fitton Ltd of the UK to borrow $50 million.
The purpose of the borrowing is to import capital machinery ($33 million), land and building purpose ($3.5 million) and for other fixed capital investment ($2 million) for the refinery company. The utilisation of the remaining $11 million was not specified by the company.
Buildtrade Foils Ltd, a manufacturer of foils and other allied products, intends to borrow $10 million from the offshore unit of AB Bank and 17.7 million euros from Commerz Bank of Germany.
The company plans to set up a plant that would provide complete aluminium foil packing solutions using the latest equipment and technology.
The rate of interest on the loan from AB Bank is six-month Libor, plus 4.25 percent and the repayment period will be six years with two years of grace period.
Desh Energy Ltd, a power generation company, will take $22.02 million from One Bank at an interest rate of 12-month Libor plus 4.5 percent. The repayment period is two years from the drawdown.
The company supplies 100 megawatts power to the national grid daily from its Siddhirganj power plant. Due to some generators' disturbance, it was unable to produce the full load and has subsequently decided to import three more new generators from MAN Diesel & Turbo SE of Germany. The funds will be spent to finance the imports.
Civil Engineers Ltd sought $9 million from the offshore unit of Brac Bank to import capital machinery, make payments for other local expenditure and refinance the higher-rated local currency loans.
The rate of interest for all the loan is three-month Libor plus 4.5 percent and the repayment period is five years including six months of grace period.
Dress Shirts Ltd has sought $3 million from HSBC Bank at an interest rate of three-month Libor plus 4.5 percent, with a repayment period of four years including a grace period of six months.
The company, which was established in 2003 solely for exports, is taking the loan to import modern machinery and industrial equipment.
Givensee Garments Accessories and Givensee Garments Ltd have sought around $5.63 million for deferred payment of machinery imported from Korea-based DH Euro Hi Tech Co Ltd.
Hotapara Garments, too, has sought around $4.66 million from the same Korean company for deferred payment against imported machinery.

The rate of interest on both the loans is 6 percent. Matin Knitwear Ltd, a 100 percent export oriented company, will take $1.11 million from City Bank at an interest rate of three-month Libor plus 4.5 percent to be repaid in monthly instalment within five years.
The company in its proposal said they would spend the loan to refinance the high-cost existing term loans in taka created for machinery imports.
Four other companies including Walton Hi-Tech Industries Ltd have sought extension of their earlier approved loans amounting $17 million.