Bangladesh-based Prime Bank has secured a US$30mn loan from the Opec Fund for International Development, aimed at providing “critical” trade finance support to businesses grappling with economic upheaval.
The facility is structured as a one-year term loan with an extension option up to three years, and funds are provided to Prime Bank’s Offshore Banking Unit.
The Dhaka-headquartered lender said it will use the proceeds to provide trade finance facilities to SMEs, agricultural businesses and corporates.
Reinforcing Prime Bank’s trade finance portfolio is expected to provide “much-needed stability and support to Bangladeshi businesses navigating complex global economic headwinds”, it said.
Opec Fund president Abdulhamid Alkhalifa said small businesses and agricultural producers “play a vital role in jobs, food security and economic resilience in Bangladesh, yet many still struggle to access trade finance”.
“Our partnership with Prime Bank will help unlock new opportunities, diversify exports and strengthen the country’s private sector,” he said.
Faisal Rahman, chief executive of Prime Bank, said the facility “will meaningfully enhance our capacity to support the trade financing needs of our valued clients”.
“This collaboration comes at a critical time when businesses are navigating uncertainties in the global economic landscape.”
Bangladesh has been forced to halt production at state-run fertiliser factories this year due to disruptions in supply of ammonia and nitrogen via the Strait of Hormuz, a UN report warned last week.
The country is also dependent on imported LNG for the majority of its power generation, and authorities have limited fuel sales and scheduled blackouts since the conflict started.
