PrimaDollar and Agrani Bank Limited (ABL) have agreed to cooperate in the provision of international trade finance services to exporters across Bangladesh.
A joint venture agreement was signed in this regard by the Managing Director & CEO of Agrani Bank Limited, Mr. Mohammad Shams-Ul Islam and Mr. Tim Nicolle, CEO of PrimaDollar Group, UK.
As the leading player in the Bangladeshi export finance market, ABL is looking to roll this solution out across its authorised dealer branch network over the coming months. ABL is one of the largest players in the provision of export finance across Bangladesh, with over US$4 billion in volumes in 2017.
Under the terms of the agreement, it is envisaged that customers of ABL will be able to:
- Work on open account (“sales contract”) with their international buyers and offer deferred payment terms (60, 90, 120 days).
- Receive pre-shipment facilities from ABL without asking their creditworthy international buyers for a letter of credit.
- Get paid by ABL at shipment on presentation of documents.
- ABL, via its relationship with PrimaDollar, will collect from the buyer at term and will take the buyer’s credit risk.
Export transactions which are organised without international letters of credit are simpler, quicker and cheaper to realise for all parties.
This solution will help the export community of Bangladesh to compete on equal terms with exporters from other countries without taking additional risks.
This agreement has received extensive coverage across Bangladesh. See, for example, coverage in the Financial Express, one of the major daily newspapers in Bangladesh:
The Deputy Managing Directors of Agrani Bank Limited- Mr. Md. Yusuf Ali, Mr. Md. Khairul Kabir, Mr. S.M. Nurul Ahsan and General Manager & Head of International Division Mr. Mahmudul Ameen Masud were present on behalf of Agrani Bank Limited. Mr. Syed Abu Naser Bukhtear Ahmed- Non-Executive Chairman, Mr. MS Siddiqui, Senior Advisor and Mr. Nasrat Ahmed Khan, Chief Executive, PrimaDollar Bangladesh were present on behalf of PrimaDollar.
Agrani Bank Limited is one of the largest banks operating in Bangladesh today with over 900 branches and a AAA (local) rating. Agrani Bank Limited is also widely recognised as the leading provider of export finance solutions in Bangladesh, supporting over US$4 billion in export volumes in 2017.
PrimaDollar is a British-based global trade finance company. PrimaDollar is registered in the UK with the Financial Conduct Authority, the principal UK financial regulator. In Bangladesh, PrimaDollar operates under the permission of the Bangladesh Investment Development Authority.