Dhaka Bank Ltd arranged a syndicated loan of Tk 900 crore for Bashundhara Oil and Gas Company Ltd (BOGCL) to help it set up a crude oil products refining plant.
Other lenders are Southeast Bank, Social Islami Bank, NRB Bank, South Bangla Agriculture & Commerce Bank and Saudi-Bangladesh Industrial and Agricultural Investment Company (Sabinco).
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The annual refining capacity of the plant, located at Keraniganj of Dhaka, is 17 lakh tons.
The plant will mainly produce bitumen by refining crude oil. In addition, diesel, heating oil and naphtha will be produced.
The financial closing ceremony for the syndicated term loan was held at a local hotel in the capital on October 12.
Emranul Huq, Managing Director of Dhaka Bank, Mr Kamal Hossain, MD of Southeast Bank, Zafar Alam, MD of Social Islami Bank, Mamoon Mahmood Shah, MD of NRB Bank, Habibur Rahman, MD (current head) of SBAC Bank, and Ahmed Ehsanul Karim, MD of Sabinco, participated in the program.
Ahmed Akbar Sobhan, Chairman of Bashundhara Group, and Sayem Sobhan Anvir, Managing Director of BOGCL, were also present.
According to Emranul Huq, BOGCL has already started production by setting up Unit 1 of the factory. The unit has a production capacity of five lakh tons.
Unit 2 will go into production by December, he said.
“The products that will be produced by the company are entirely import substitutes. Thus, the country’s foreign exchange reserves will benefit from the investment.”