ICB secures Tk3,000 crore loan from CenBank at 4% interest

The Investment Corporation of Bangladesh has secured a Tk3,000 crore loan from the Bangladesh Bank at a reduced interest rate of 4%, down from the initial 10%.

The loan, backed by a sovereign guarantee, is intended for ICB's debt repayment and stock market support.

The Bangladesh Bank had issued a formal letter to ICB on 27 November, sanctioning the Tk3,000 crore loan at a 10% interest rate with a tenure of 18 months.

However, following ICB's request, the interest rate was revised to 4%, aligning with the rate commercial banks currently enjoy for borrowing from the central bank.  

Two senior ICB officials confirmed to The Business Standard today that the state-owned investment firm secured the cheaper loan for an 18-month term and they expect immediate disbursement.

From half to two-thirds of the new fund might be used to repay ICB's overdue with several lenders and the remaining funds would be invested in fundamentally strong, undervalued listed company shares, the officials added.

ICB has already opened a new beneficiary owner account to inject the new fund for stock market investments and it will stick to justified investment cases so that the account ensures a decent return to repay the debt on time.

Analysts are hopeful that ICB's purchase of fundamentally sound stocks will have a positive impact on the stock market.