Saif Powertec turns to BB to get Tk3,063cr default loans rescheduled for 15 years
BB official says the request is left to the banks to decide
Saif Powertec Limited, a major operator in Bangladesh's port, fuel and shipping sectors, has sought a 15-year loan rescheduling facility from the Bangladesh Bank (BB) as it struggles with Tk3,063 crore in defaulted loans across 11 banks and financial institutions.
The company has requested the central bank to allow repayment over 15 years with a grace period of three years on both principal and interest, and a down payment of only 1%.
According to the request letter, a copy of which TBS has obtained, Saif Powertec has also asked the central bank to fix interest at no more than 2% above banks' cost of funds. It also wants the central bank to ease large-exposure limits if required to grant the facility.
Company Secretary FM Salehin told The Business Standard that Saif Powertec had been repaying loans regularly until "banks suddenly demanded full repayment".
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He added that the company could not immediately settle the entire outstanding amount and therefore sought Bangladesh Bank's support to continue operations.
Repeated attempts to reach Managing Director Tarafdar Md Ruhul Amin by phone were unsuccessful.
In the rescheduling application, however, Ruhul Amin warned the firm's classified loans were hurting business operations and forcing the use of working capital to regularise loans.
He cautioned that continued pressure could halt activities and jeopardise the jobs of more than 4,000 employees across the group.
Request depends on banks
Saif Powertec's request of a 15-year repayment period and down payment of 1% contradicts with the central bank's latest loan restructuring policy.
It allows loans of Tk300 crore or more can be rescheduled and restructured only through the central bank's dedicated committee. However, it stipulates that no borrower's loan can be rescheduled for more than 10 years, with a minimum down payment of 2%.
This facility will be available to businesses until December. Meanwhile, the central bank's broader master circular allows ten years and a down payment between 2.5% and 4%.
A senior official from the Bangladesh Bank told The Business Standard that the central bank has received Saif Powertec's loan rescheduling application, but no decision has been made yet.
"Previously, the company applied for policy concessions, and our committee proposed certain benefits, but they did not accept them," he said on condition of anonymity.
The official added, "We have now left the entire process to the banks, as they know their customers best. Once the banks take action, we will review the matter accordingly."
Saif's Tk3,063cr loans
Saif Powertec Group consists of four entities: Saif Powertec, E-Engineering, Saif Port Holding, and Maxon Power. Together, these companies owe classified loans across 11 banks and financial institutions, according to documents reviewed by TBS.
National Bank alone is carrying over Tk1,554 crore in non-performing exposure linked to the group, while United Commercial Bank (UCB) has more than Tk790 crore.
Other institutions include Tk290 crore with One Bank, Tk241 crore with Dhaka Bank, Tk53 crore with Padma Bank, Tk18 crore with Bangladesh Commerce Bank, Tk27 crore with Premier Bank, Tk36 crore with NCC Bank, Tk8.6 crore with Haji Finance, Tk10 crore with Bangladesh Finance, and Tk34.6 crore with Premier Leasing and Finance.
Facing auctions
Saif Powertec's financial strain has already triggered asset auctions.
UCB has placed mortgaged land belonging to Saif Powertec in Narayanganj and Chattogram up for auction as part of efforts to recover around Tk518 crore.
The bank advertised the sale on 20 March this year, also listing properties tied to E-Engineering Limited and Maxon Power Limited. The unpaid loans of the three companies total more than Tk755 crore, UCB documents show.
Saif's businesses
Saif Powertec, listed on the stock exchange in 2014, raised Tk36 crore through an initial public offering priced at Tk30 a share, including a Tk20 premium.
The company rose to prominence in 2006 when it entered Chattogram Port as a local agent for gantry crane operations.
In July this year, Chittagong Dry Dock Limited, operated by the Bangladesh Navy, assumed control of the New Mooring Container Terminal (NCT) at Chittagong Port, ending Saif Powertec's 17-year tenure.
However, Saif Powertec currently operates the Chittagong Container Terminal (CCT), which has a total of two jetties. It also continues to operate NCT-1, which has one dedicated jetty for transportation along the Chattogram-Pangao route.
The company also manages the inland container depot in Kamalapur, Dhaka, where containers transported by rail from Chattogram Port are received and processed. It also operates businesses in logistics, civil engineering, battery production and electrical equipment.
