The New Nation - Internet Edition

NATION BUSINESS REPORT

Prime Bank Limited, one of the leading private commercial banks of the country, has raised Tk 11 billion from local syndication credit market in the last 10 years.

The bank has been extending credit facilities through syndication not only to the large projects but also to the small and medium projects with the objective to share and diversify the risks associated with the credit.

It was stated at the inaugural session of a daylong workshop on 'Syndications & Structured Finance--Practices in Bangladesh' organised by Prime Bank Limited for Bangladesh Bank officials at a city hotel on November 18 last.

Murshid Kuli Khan, Deputy Governor of Bangladesh Bank inaugurated the workshop as the chief guest.

M Ehsanul Haque, Managing Director of Prime Bank Limited was present at the workshop as special guest.

A total of 17 senior officials from various departments of Bangladesh Bank attended the workshop.

The syndicated credit market in the country is developing rapidly owing to the imposition of regulatory limit by the central bank, diversification of risks and in-depth analysis of the project by more than one analyst for large projects etc.

Many local banks and financial institutions are coming ahead to take part in the syndication market as lead arranger and also for functioning as agent, which is the core function of any syndication loan process.

The major area of the workshop were: understanding the loan market and syndication instruments, syndication loan process, factors of syndication credit market, role of mandated lead arranger and agent, structuring of syndication deal, documentation and various legal aspects of syndication loan, risks involved in syndication market and challenges faced in syndication credit market in Bangladesh etc.

Prime Bank Limited created its distinct position among the foreign and local commercial banks as Mandated Lead Arranger (MLA) and developed expertise through syndication financing in different sectors.

It played role as Lead Arranger in glass manufacturing, pharmaceuticals, independent power project, textile industry, chemical, agro-based industry and infrastructure developments projects etc.

Md Mehmood Husain, DMD and Md Touhidul Alam Khan, SVP and Head of Syndications and Structured Finance Unit were the key speakers of the session and Md Tabarak Hossain Bhuiyan, EVP and Head of Human Resources Division conducted the session.

Mahbubul Alam, DMD, M. Reazul Karim, DMD, Ahmed Kamal Khan Chowdhury, DMD and other senior officials from Prime Bank Limited also attended the workshop.