Berger to borrow dollars from parent company

Berger Paints Bangladesh has decided to take a loan from its parent company, J&N Investments (Asia) Ltd, to facilitate the opening of a letter of credit for the import of raw materials. 

The multinational listed company, in a Dhaka Stock Exchange (DSE) website statement, said it would avail the loan of $60 million in phases as per the company's business requirement.

However, the matter is still subject to approval of the relevant regulatory authorities, it added.

As banks are facing a shortage of dollars, the company is taking the loan so that it does not face any difficulties in bringing raw materials, said Company Secretary Khandker Abu Jafar Sadique.

"If we don't face any difficulties to open LCs, then the loan may not be used. It is just to keep open an opportunity," he said.

"At present, banks are opening LCs but they take time so we are keeping a second option open," he said.

About the interest rate, he said it would be decided following the directives of Bangladesh Bank and Bangladesh Investment Development Authority.

Berger became listed with the DSE in 2006 and its paid-up capital is Tk 46 crore. Its stock was traded at Tk 1,742 at the exchange yesterday.