The New Nation - Internet Edition

BUSINESS REPORT

Eastern Bank Ltd has arranged a syndicated facility of BDT 300 million medium term loan/investment for Magnum Steel Industries Limited (MSIL), an automatic steel re-rolling mill with a production capacity of 90,000 tons of MS Rods per annum.

The signing ceremony of agreements to this effect was held at Pan Pacific Sonargaon Hotel on July 16, 2008. The participating banks are Bangladesh Commerce Bank Ltd, Bank Alfalah Ltd, Eastern Bank Ltd (EBL), Peoples Leasing and Financial Services Ltd, Social Investment Bank Ltd, and The City Bank Ltd. EBL is the Agent and Account Bank for this transaction.

MSIL is setting up a modern production unit at Gazaria, Munshiganj, about 35 kilometers from Dhaka, with the objective of producing a range of hot rolled bars (de-formed rods) of mainly 60 grade and different wire rod/wire drawing items.

The mill will use the latest technology to produce Thermo Mechanically Treated (TMT) bars.

While achieving a higher level of strength, these bars will have a lower carbon content thus allowing greater flex and weld ability and making them more suitable than the standard grade 60 deformed bars.

The main persons behind the group are H R Nizam and Zahir Chowdhury. Although a Mechanical Engineer by qualification, Nizam has spent a long career of over 40 years in business. Zahir Chowdhury is a banker turned industrialist who started his professional career over 40 years ago in Grindlays Bank. After nearly 30 years in banking, he became involved with industry nearly 10 years ago.

Ali Reza Iftekhar, MD & CEO of EBL expressed his appreciation to all lending partners for their wholehearted support towards achieving the financial close of this milestone transaction. Mr Iftekhar also thanked the participating banks for showing their confidence on EBL and assured that EBL will continue its efforts to bring quality transactions in the market. He wished MSIL all success for the future.

Managing Directors, Chief Executive Officers and top executives of the all the participating banks were present on the occasion.