Oesterreichische Kontrollbank AG (OeKB), a specialised institution owned by commercial banks of Austria has issued ECA (export credit agency) guarantee worth $94.85 million to Chittagong-based GPH Ispat recently.
The guarantee letter was issued so that GPH Ispat can avail a loan of similar amount at soft interest rate from BHF Bank of Germany.The letter was handed over to the GPH authorities at an event held at the Vienna head office of OeKB, GPH officials said today.
Mag. Ferdinand Schipfer, Managing Director of OeKB, Ortrun Suppanz, Senior Manager of OeKB, Mohammed Jahangir Alam, Chairman of GPH Group, Md Almas Shimul, additional managing director of GPH Ispat, , Kamrul Islam FCA, senior general manager and chief financial officer of GPH Ispat, Eng. Dr. ASM Sumon, head of project of GPH Ispat, Dr. Nahid Hasan, consultant of GPH Ispat, and representatives of Primetals Technologies of Austria were present at the event.
The OeKB core services strengthen Austria as a business location and help Austrian industry to compete successfully in the global marketplace.
Earlier on March 15, 2017, BHF Bank signed a contract with offshore units of 5 local banks led by UCB to disburse above loans. The loan is payable within 12 years period including 2 years grace period with an interest of rate of 6 months LIBOR + 1.4 per annum.
GPH Ispat will utilize the loan for its expansion, which is going on in full swing. The technology that is being used in the expansion is not only the first of its kind in Bangladesh, but also in Asia.
It will ensure world-class products and reduce the production cost, allowing the company to offer goods at competitive prices to the customers.