Bangladesh Project Finance Update: Some New Developments and Practices on the Local Aspects of Cross-border Financing in BangladeshOctober 16, 2021
The “economic miracle of Bangladesh” has in part been fueled by a robust interest by Development Financial Institutions and International Financial Institutions. The Government has been driving an energy and infrastructure push, and has also put great effort on developing industrial zones. Reason enough to take another, updated look at project finance in Bangladesh.
Highlights of this note
- Government approval for foreign loans: Currently, most applications are approved, but there are delays
- New process for updating the borrower credit database
- Holding and obtaining foreign currency
- Contractual documentation
- Security: enforcement of a share pledge now requires cooperation by the pledgor
- How much debt is allowed and at which interest rate?