Corporate Banking
 
 

AB Bank provides Corporate Banking solutions to the growing Corporate Sector of the country.  To meet the diverse financial needs of the corporates, the Bank provides a broad spectrum of products and services . With expertise, innovation and customization, the Bank simplifies the complexities of the financial world for the clients and help them attain their desired objectives. The prime focus is on building and maintaining long-term mutually beneficial relationship with the clients, and being a part of their journey towards development and growth.

Corporate Banking solutions are channelised through the following:

  1. Corporate Finance
  2. Structured Finance

1. Corporate Finance
AB Bank offers a wide range of Corporate Banking Services, which are:

  1. Project Finance
  2. Working Capital Finance
  3. Trade Finance
  4. Offshore Banking
  5. International Banking
  6. Islami Banking Finance

A. Project Finance:

AB Bank allows loans on competitive terms for setting up a new stand alone, capital or labor intensive project or for BMRE of an existing project.

B. Working Capital Finance:

  • Overdraft: Overdraft, a convenient and flexible form of financing is allowed to meet working capital needs for purchasing of raw materials/inventory, financing receivables, meeting routine operating expenses and overheads of a business
  • Time Loan: Time Loan facility is allowed to meet different short-term working capital requirements (for tenors up to 12 months) of the client.
  • Import Letter of Credit: A Letter of Credit is a payment undertaking of the issuing/Opening Bank to the Beneficiary against complying presentation. In case of  Letters of Credit, AB Bank makes payment only after presentation of complying documents as per the terms of the Credit which ensures a safer and cheaper alternative to making advance payments or deposits.
  • Trust Receipt: Loan against Trust Receipt popularly known as LTR is allowed as a post import finance for retirement of LC documents, sell the goods/consignment within a specified time and repay the Bank’s dues.
  • Packing Credit: Packing Credit popularly known as PC is allowed to finance exporters only to procure raw materials against respective export orders.
  • EDF Loan
  • Export Letters of Credit: AB Bank ensure prompt advising of Export Letters of Credit to the Beneficiaries which are received from a wide international network of  International Banks. Export Related financing are also offered to clients to facilitate processing of export orders, such as:
    • Export Letters of Credit (Including Back to Back L/C)
    • Foreign Bill Purchase: Inland Bill Purchase (IBP) is allowed as finance against deferred inland bills duly accepted by reputed banks and to improve the cash flow so that clients propensity to do increased business is facilitated
    • Foreign Documentary Bill Collection
    • Packing Credit
    • EDF Loan
  • Bank Guarantee: Bid Bond is issued ( on behalf of the clients) for helping Contractors/Suppliers to participate  in different Tenders. Performance Guarantee (PG) is issued ( on behalf of the clients) to ensure  Contractors’ /Suppliers’ performance against assigned contracts. Advance Payment Guarantee (APG) is issued ( on behalf of the clients) to  help Contractors’ /Suppliers’ secure advance against the awarded contracts to ease their financial constraints. Security Bond (Payment Guarantee) is issued ( on behalf of the clients) in favour of various utility companies, customs authorities, shipping agents, Airlines, IATA, or for any other purpose as per requirement within the purview of regulatory rules & regulations. Guarantees against Counter Guarantee of any reputable and rated foreign banks.
  • Foreign Bill Purchase: Foreign Bill Purchase (FDBP) is allowed at the request of the Exporter against complied export documents or against acceptance to improve the cash flow of the client.
  • Inland Bill Purchase: Inland Bill Purchase (IBP) is allowed as finance against deferred inland bills duly accepted by reputed banks and to improve the cash flow so that clients propensity to do increased business is facilitated.

C. Trade Finance:

AB Bank’s trade finance is tailored to meet the individual needs of businesses

  • Import Letters of Credit: A Letter of Credit is a payment undertaking of the issuing/Opening Bank to the Beneficiary against complying presentation. In case of  Letters of Credit, AB Bank makes payment only after presentation of complying documents as per the terms of the Credit which ensures a safer and cheaper alternative to making advance payments or deposits.
  • Export Letter of Credit: AB Bank ensure prompt advising of Export Letters of Credit to the Beneficiaries which are received from a wide international network of  International Banks. Export Related financing are also offered to clients to facilitate processing of export orders, such as:
    • Export Letters of Credit (Including Back to Back L/C)
    • Foreign Bill Purchase: Inland Bill Purchase (IBP) is allowed as finance against deferred inland bills duly accepted by reputed banks and to improve the cash flow so that clients propensity to do increased business is facilitated
    • Foreign Documentary Bill Collection
    • Packing Credit
    • EDF Loan
  • Shipping Guarantee
  • Foreign Bill Purchase: Foreign Bill Purchase (FDBP) is allowed at the request of the Exporter against complied export documents or against acceptance to improve the cash flow of the client.
  • Inland Bill Purchase: Inland Bill Purchase (IBP) is allowed as finance against deferred inland bills duly accepted by reputed banks and to improve the cash flow so that clients propensity to do increased business is facilitated.
  • Foreign Documentary Bill Collection
  • Bank Guarantee: Bid Bond is issued ( on behalf of the clients) for helping Contractors/Suppliers to participate  in different Tenders. Performance Guarantee (PG) is issued ( on behalf of the clients) to ensure  Contractors’ /Suppliers’ performance against assigned contracts. Advance Payment Guarantee (APG) is issued ( on behalf of the clients) to  help Contractors’ /Suppliers’ secure advance against the awarded contracts to ease their financial constraints. Security Bond (Payment Guarantee) is issued ( on behalf of the clients) in favour of various utility companies, customs authorities, shipping agents, Airlines, IATA, or for any other purpose as per requirement within the purview of regulatory rules & regulations. Guarantees against Counter Guarantee of any reputable and rated foreign banks.
  • Standby Letter of Credit
  • Trust Receipt: Loan against Trust Receipt popularly known as LTR is allowed as a post import finance for retirement of LC documents, sell the goods/consignment within a specified time and repay the Bank’s dues.
  • Packing Credit: Packing Credit popularly known as PC is allowed to finance exporters only to procure raw materials against respective export orders.
  • EDF Loan

D. Offshore Banking:

Our Offshore banking unit consists of the following Branch:
Offshore Banking Unit, EPZ, Chittagong
In line with the Bangladesh Bank Guideline, AB OBU is offers  following products & services:

  • Add Confirmation to L/Cs Issued: Conformation of L/Cs to Foreign Suppliers Assist in the smooth execution of L/C Term. AB OBU adds confirmation to Deferred Credits issued by other Banks or Branches of AB Bank Conveniently like any offshore Foreign Bank
  • Bill Discounting (Import Bills): OBU  offers bill discounting facility against  import bills to secure clients’ business growth and improve their negotiating base with suppliers. This discounting is against import L/Cs originating in Bangladesh for a minimum period of 180 days (raw materials) at LIBOR ++ and 360 days for capital machineries upon acceptance from reputed and rated Banks.
  • Discounting of Export Bill: An exporter derives benefit from interest rate differential when discounting export bills including Deferred Payment (DP) Bills by OBU.
  • Foreign Currency Time Loan/Term Loan: Foreign currency Loans are available  to both resident (with BOI permission) and foreign owned companies under a set of agreed terms and conditions.
Buyer’s Credit

E. International Banking:

Our International banking unit consists of the following Branch:

  • Mumbai Branch, India.

F. Islami Banking Finance:

Clients wising to procure machinery, land, car, etc. on equity participation basis may select subject mode to hire/rent those assets form the Bank for certain period including a portion of the principal so that they derive proportionate ownership during the currency of the lease.
Islamic Banking wing of the bank finances in all sectors i.e. Business, Agriculture, Real Estate, etc. if the purpose of the investment is permissible under Islamic Shariah.

Products Include:

  • Hire Purchase under Shirtatul Melk: HPSM Facility allows the client to procure assets such as machinery, land, car etc. on equity participation basis. The Bank rents out its portion of assets to the client for a certain period. The client pays the rental with a part of principal amount on monthly / quarterly basis. The client gets its proportionate ownership with the payment of monthly / quarterly installments. On maturity, total ownership of the assets automatically transfers to the client as and when final payment of the account is made.
  • Bai Muajjal/Bai-Murabaha: These products are for the clients who are seeking working capital finance. Under these schemes bank purchases goods / raw materials as per requirement of the client. In case of Bai-Muajjal bank receives the sales proceeds on deferred payment basis  And in case of Bai-Murabaha, Bank receives the sale price at the time of delivery of the goods / raw materials. Before handing over the goods / raw materials the bank generally keeps the same in its custody under pledge.
  • Ijara or Leasing: This product is similar to HPSM Facility. In this case equity participation may or may not be required. Ownership of the asset is not automatically transferred to the client with the payments of installments. On maturity, the bank transfers the ownership to the client on payment of certain transfer fees.
  • Musharaka: This product allows the Bank and the client to jointly participate in a scheme or project. Profit is shared between the Bank and the concerned client as per the pre-agreed ratio. On the other hand  loss is shared according to the capital ratio.
  • Mudaraba: Through Mudara Facility Bank finances the scheme as a Shaheb-Al-Maal (owner of  the capital). Profit is shared between the two sides as per pre-agreed ratio.
  • Foreign Trade: Foreign Trade is facilitated by complying , Shariah principles and concerned rules & regulations of the country provides the following services at its foreign trade desks:
    • Opening of LCs
    • Post -Import Finance
    • Export bill purchase and negotiation
    • Pre-shipment financing etc.

2. Structured Finance
AB Bank Limited has a proven track record as bookrunner, mandated lead arranger and underwriter of Syndicated loans. Due to the long experience  and flexible handling the Bank can offer clients tailored loans as well as a complete service for complex transactions through Syndication.

As an unwavering financial partner with substantial underwriting capacity, the Bank offers clients the following facilities:

  1. Preparation of Information Memorandum
  2. Deal Structuring
  3. Equity Financing
  4. Corporate Advisory Services

A. Preparation of Information Memorandum:

To minimize and diversify the risk of financing large infrastructure Projects and to facilitate the Prospective and Potential Investor, AB Bank Limited through its Structured Finance Division prepares and provides the Information Memorandum to other Financial Institutions to raise debt. An Information Memorandum generally (but not limited to) contains the following information:

  • Management Structure to facilitate the project
  • Marketing Aspect
  • Technical Aspect
  • Financial Aspect
  • Environmental Aspect

B. Deal Structuring:

AB Bank Limited through its Structured Finance Division helps the clients to customize the terms and conditions of a Syndicated Loan, providing flexibility to the client and protecting the interest of the participating lenders as well.

C. Equity Financing:

Depending on the clients need, AB Bank Limited also provides Equity Financing channelized through the Investment Banking Division.

D. Corporate Advisory Services:

AB Bank Limited offers an array of services to clients which includes providing complete financial solutions to meet the daily challenges.