BANGLADESH: Standard Group secures financing after blaze
Standard Group has secured a US$50m loan from Bangladesh's central bank, weeks after two of the garment manufacturer's buildings were gutted by a fire.
A spokesperson for Bangladesh Bank confirmed to just-style today (10 December) it had approved the loan for Standard Group, which is looking to resume production following the suspected arson attack.
"Central Bank has agreed as a special case for the arson affected Standard Group, to extend up to US$25m for input import financing at an interest rate of LIBOR plus 1.5%," the spokesperson said.
"Another $25m in longer term loans will be arranged by offshore banking units of foreign banks in Bangladesh, at mutually negotiated interest rates."
Standard Group is understood to have loan accounts with Standard Chartered Bank, HSBC and Citibank in local currency.
The blaze took place on 29 November, destroying a ten-storey building operated by the Standard Group at Konabari in the Gazipur industrial belt near the capital Dhaka. The cost of the damage is estimated at more than BDT12bn (US$154.3m).
The fire has been blamed on an arson attack - with apparel makers last week urging the government to catch the culprits within a week.
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