15 Sep This year, the bank has already arranged Tk
850 million under such scheme for Sea Pearl Beach Resort and Spa Limited in Cox's Bazar, which is set to be the first five star resort in Bangladesh promoting international time sharing.
Earlier, the bank also played a pioneering role in raising syndication loan for the country's first vacuum evaporated salt re-crystallization plant, the first hydrogen peroxide project and the first ever float glass manufacturing plant
In 2006, the bank arranged the first ever Sharia'h based syndicated investment facility and at the same time, it has imparted training on syndication techniques and practices for central bank officials, officials said.
“Years ago, only the multinational banks used to take the leading role in syndicated financing but lately the local private banks have come forward to dominate the scene”, Ehsanul Haque said.
Main syndication motives, such as loans portfolio diversification, title loans in Hawaii regulatory pressure and management costs reduction, also influence syndicate structure in emerging markets
Terming the syndicated loan scheme as the future in the banking sector, he said, “The greater opportunity for risk sharing in syndicated financing would enable the local banks to finance a greater number of up and coming infrastructure projects requiring sizable investments”.
Haque called for quicker initiation of the government's Public Private Partnership (PPP) projects, underlining these large-scale infrastructures would require joint financing by the government and private sector to take off.
“Until now, the local private banks have largely opted out of financing large-scale power sector projects as they usually involve long term investment and pose greater risk
Syndication or club financing is a growing concept in Banking Arena of Bangladesh.