Loan Syndication
 
 
  • Syndication or club financing is a growing concept in Banking Arena of Bangladesh. Syndicated finance diversifies the risk of one bank on a single borrower and increases the quality of loan through consensus or cumulative judgment and monitoring of different banks / financial institutions.

  • AB Bank, the first bank in the private sector also took initiative to adapt to this growing concept.

  • In 1997, AB Bank for the first time arranged a club financing with Dhaka Bank Ltd to raise Tk. 6700 lac - out of which ABBL financed Tk. 5700 Lac and Dhaka bank financed Tk. 1000 Lac.

  • In 1999, AB Bank arranged its second syndicated credit facility with IPDC to raise Tk 3563 Lac.

  • Since then AB Bank did not look back.

  • Since 1997 to 2007 (till date), AB Bank has raised total Tk. 25989.56 Lac as Lead Arranger. The following banks from time to time have been our partners in these syndications :  Dhaka Bank, IPDC, EXIM Bank, Bank Asia, Oriental Bank, NCC Bank, The City Bank, Trust Bank, Bank Asia.

  • AB Bank has also participated in different syndications arranged by other Banks, out of which till date 6 (six) syndication has successfully been completed. AB Bank exposure in these completed syndications was   Tk. 4700 Lac.

  • At the moment AB has participation in 19 (nineteen) syndicated facilities. AB Bank’s exposure in the ongoing syndication is Tk. 51560.29 Lac which is diversified in the following ten sectors:
SL Sector ABBL Participation
(Fig. in Lac Tk.)
1 Textile 9,533.57
2 Micro-finance 3,000.00
3 Cement 7,990.00
4 Energy & Power 11,997.00
5 Telephone (PSTN) 5,500.00
6 Glass 900.00
7 Sugar 900.00
8 Steel Mills 9081.72
9 Paper 1158.00
10 Chemical 1,500.00
  Total 51,560.29