ICD Signs a Murabaha Facility with LankaBangla Finance Limited in Bangladesh to support SMEs
Dhaka, Bangladesh – 27 January 2019 - The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group, signed a Murabaha Facility of USD 20 Million with LankaBangla Finance Limited (LBFL) to support the growth and productivity of SMEs in Bangladesh. Green Delta Capital Limited (GDCL), who assumed the role of lead advisor, were instrumental in the successful conclusion of this transaction, and will continue to provide expertise in their capacity as a Security Agent. This is the first time in Bangladesh that a non-bank financial institution (NBFI) has sought foreign funds to finance the country’s growing SME sector, signifying a landmark deal for the LBFL as well as for the country.
Mr. Ayman Amin Sejiny, CEO & General Manager of ICD and Mr. Khwaja Shahriar, Managing Director of Lanka Bangla Finance Limited signed the facility agreement on behalf of their respective organizations. During the signing event, Mr. Md. Rafiqul Islam, Managing Director & CEO of Green Delta Capital Limited was present and graced the occasion.
During the signing event, Mr. Sejiny commented, “SMEs have affirmed their position as a key force for an economy’s development, and ICD is proud to play a role in extending financial support to SMEs in Bangladesh. As a multilateral development institution, our aim is to enhance the prospects for more resilient and inclusive growth in our member countries through financial inclusion and the creation of sustainable employment opportunities. As we believe in LangkaBangla Finance Limited (LBFL)’s mission, we look forward to a long-standing partnership with them.”
Mr. Shahriar said, “The facility will help Bangladeshi SMEs gain access to additional financing to capitalise on more business opportunities and to meet their working capital needs. We are pleased to be working together with multilateral development institutions such as ICD, a first for LBFL, to assist and to reach out to as many SMEs as possible. Developing vibrant and healthy SMEs are integral to Bangladesh’s economic transformation process and we remained committed to helping them access credit resources and financial services.”
About the Islamic Corporation for the Development of the Private Sector (ICD)
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Sharia’a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s. For more information, visit www.icd-ps.org
About LankaBangla Finance Limited (LBFL)
LankaBangla Finance Limited is a non-banking financial institution licensed by Bangladesh Bank. It was established in 1996 as a joint stock company with a vision to facilitate and promote financing to a wide periphery of end users. Today, LBFL is the country’s leading integrated financial services provider. The Company went public in 2006 and its shares are listed in both Dhaka Stock Exchange and Chittagong Stock Exchange on 17th October 2006 and 31st October 2006 respectively. LBFL has three subsidiary companies: LankaBangla Securities Limited, LankaBangla Investments Limited and LankaBangla Asset Management Company Limited. For more information, visit www.lankabangla.com
About Green Delta Capital Limited (GDCL)
Green Delta Capital Limited (GDCL), a full-fledged Merchant Bank incorporated in Bangladesh, licensed and regulated by Bangladesh Securities and Exchange Commission (BSEC). GDCL is a fully owned subsidiary of Green Delta Insurance Company Limited where International Financial Corporation (IFC, a World Bank Group Concern) is the equity partner of the parent company. GDCL is the leading Merchant Bank in Bangladesh which provides full-fledged Investment Banking services including traditional Merchant Banking activities. GDCL has strong footprint in Bangladesh markets to execute large debt & equity deals in various sectors including Infrastructure, RMG, Pharmaceuticals, FMCG, Power & Energy, Manufacturing, etc. GDCL has so far raised $615 million as debt from global markets, BDT 15+ Billion as local debt, BDT 7+ Billion Million as equity. They are specialized in providing Structured Finance & Syndication, Corporate Advisory, Equity Origination, Merger & Acquisition Advisory, Private Equity, Public Private Partnership (PPP) Financing, Portfolio Management and Wealth Management Services with customized solutions. For more information, visit http://www.greendeltacapital.com
For further information please contact:
Ahmed A Khalid / Nabil Al-Alami
Regional Head – Asia / Head, Marketing