Photo: Collected
The interim government has signed an agreement with Asian Infrastructure Investment Bank (AIIB) to avail a $158.89 million loan to implement a power transmission infrastructure project through Power Grid Bangladesh PLC. The loan has a maturity period of 32 years, including a seven-year grace period, and will come in several currencies $109.78 million, €29.42 million ($30.90 million) and ¥132.49 million ($18.21 million), according to a press release.
The interest rate will be secured overnight financing rate (SOFR) plus variable spread for the USD, six-month euro interbank offered rate (EURIBOR) plus variable spread for the euro and 3-month Shanghai interbank offered rate (SHIBOR) plus variable spread for the Chinese Renminbi.
A "variable spread" is a percentage added to a benchmark interest rate (like SOFR) that adjusts over time based on factors such as credit risk, market conditions, or predefined terms in a financial agreement.
In addition, front end fee will be 0.25 percent of the loan amount (one time) and commitment fee will be 0.25 percent of the undisbursed amount.
Front end fee on a loan means a charge levied by a lender when a loan is set up or when the first payment of the loan is taken. It may be a commitment fee, an establishment fee, or a documentation fee.
Mirana Mahrukh, additional secretary to Economic Relations Division, and Rajat Misra, acting vice president for Investment Clients Region I and Financial Institutions and Funds, signed the agreement on the "Southern Chattogram and Kaliakoir Transmission Infrastructure Development Project" on December 10.
Messenger/JRTarek
