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Bangladesh Bank Approves Release of $3.20m Loan by Rupali Bank to SS Power

Bangladesh Bank (BB) has granted permission to Rupali Bank to release the remaining US$3,197,651.28 of an approved foreign-currency syndicated loan in favor of SS Power 1 Limited.

By Staff Correspondent
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BB allows Rupali Bank to settle US$3.20m loan for SS Power | Business
BSS

Bangladesh Bank (BB) has granted permission to Rupali Bank to release the remaining US$3,197,651.28 of an approved foreign-currency syndicated loan in favor of SS Power 1 Limited. The Banking Regulation and Policy Department-2 (BRPD-2) of the central bank issued a notification directing all scheduled banks to take necessary measures. This permission covers the release of the remaining loan amount, representing Rupali Bank's share of a previously approved foreign-currency syndicated loan. Additionally, BB permitted the opening of a Letter of Credit (LC) in favor of SS Power 1 Limited.

The central bank clarified that the relevant provision under Section 27AA(3) of the Bank Company Act, 1991, as amended up to 2023, would not be applicable to the release of the loan and the opening of the LC. It also emphasized that no financial liability will be created for the central bank against the loan facility. Furthermore, Rupali Bank will not be entitled to seek any financial assistance from Bangladesh Bank in this regard in the future.

This development is significant as it allows SS Power 1 Limited to access the necessary funds for its operations. The syndicated loan, involving multiple banks, is a common practice in large-scale financing, where the risk is distributed among several lenders. The permission from BB ensures that the process adheres to regulatory requirements and maintains financial stability.

FAQs

Q: What is the amount of the loan that Rupali Bank is allowed to release? A: Rupali Bank is allowed to release the remaining US$3,197,651.28 of the loan.

Q: Who is SS Power 1 Limited? A: SS Power 1 Limited is the recipient of the syndicated loan, though specific details about the company are not provided in the notes.

Q: What is the role of Bangladesh Bank in this process? A: Bangladesh Bank granted the permission for the loan release and opening of the Letter of Credit, ensuring compliance with regulatory requirements.

Q: Are there any financial liabilities for Bangladesh Bank or Rupali Bank? A: No, Bangladesh Bank clarified that no financial liability will be created for it, and Rupali Bank will not be entitled to seek financial assistance from BB in the future.

Source: BSS

FAQ

What is the amount of the loan that Rupali Bank is allowed to release?
Rupali Bank is allowed to release the remaining US$3,197,651.28 of the loan.
Who is SS Power 1 Limited?
SS Power 1 Limited is the recipient of the syndicated loan, though specific details about the company are not provided in the notes.
What is the role of Bangladesh Bank in this process?
Bangladesh Bank granted the permission for the loan release and opening of the Letter of Credit, ensuring compliance with regulatory requirements.
Are there any financial liabilities for Bangladesh Bank or Rupali Bank?
No, Bangladesh Bank clarified that no financial liability will be created for it, and Rupali Bank will not be entitled to seek financial assistance from BB in the future.

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