Eastern Bank Limited (EBL) has taken SOFR-based trade loan recently from Wells Fargo Bank.
According to a press release, this is the first SOFR-based transaction in Bangladesh market for the lender.
Under the deal, Wells Fargo, Singapore has extended a trade loan facility for 180 days to EBL where SOFR has been taken as the USD benchmark rate instead of LIBOR.
EBL is the leading private commercial bank in Bangladesh and first to be rated by International Rating Agency Moody's.
Wells Fargo & Company is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three US households and more than 10% of small businesses in the US, and is the leading middle market banking provider in the US Wells Fargo ranked 37th on Fortune's 2021 rankings of America's largest corporations.
Deputy Managing Director and Head of Treasury, FI and Offshore banking of EBL Mehdi Zaman said, "The transition from LIBOR to risk-free benchmark rates is a recent development in the financial market across the globe and we are happy to partner with Wells Fargo in our first step into the new era of alternative reference rates. This deal will help us prepare for this crucial LIBOR transition and future business endeavors."