Pubali Bank has concluded a US$ 52 million syndicated loan facility, which was arranged by the Bank Muscat (Sultanate of Oman) as the sole Mandated Lead Arranger and Book-runner.
The transaction received strong participation from international financial institutions, with lenders from Asia, Europe and Middle East actively supporting it, said a press release.
The landmark transaction, initially launched for a facility size of US$ 35 million, achieved significant oversubscription of about 48%, and was then scaled up to finally conclude at US$ 52 million.
Pubali Bank is delighted with the seamless execution of the facility, especially in the face of challenges presented by the ongoing pandemic.
The loan facility will provide holistic liquidity services, being instrumental in continued import and export activities and help strengthen the country's economic growth.
This will enable Pubali Bank to extend foreign currency trade credit to local banks as well as local importing and exporting businesses, and is expected to generate up to $200 million of additional trade every year especially in the post-pandemic phase.
In addition, the loan will strengthen the Bank's ability to meet the needs of its over 28 million clients across retail and small and medium enterprises (SMEs), facilitating increased trade and supporting key sectors of Bangladesh's economy such as the ready-made garment, manufacturing and food processing, production industries and agro-based industries.
Mallikarujuna Korisepati, Global Head, Treasury, Capital Market and FI of Bank Muscat, and Mohammad Shahadat Hossain, Deputy Managing Director signed for respective institutions.
Bank Muscat, which was the sole Mandated Lead Arranger and Book-runner for the Facility, is the leading financial services institution in the Sultanate of Oman.
The bank has the largest banking network in Oman and enjoys a 35 per cent market share in Oman, with assets over US$ 32 billion.
Bank Muscat has an extensive network of correspondent banking relationships across the world, which is instrumental in channelising trade business and raising funds on favorable financing terms from lenders in the GCC, Europe, USA, Asia and Africa.
The Bank completed a number of financial advisory and fundraising transactions in the first half of 2021 with an aggregate value of US$ 4.5 billion, including a sovereign syndicated term loan facility and a sovereign Sukuk."
Pubali Bank also has the strong relationship with Development Finance Institutions such as Asian Development Bank (ADB), International Finance Corporation (IFC) and other development organisations of several counties including UK and USA.