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9 banks, 5 FIs sign TDF scheme

9 banks, 5 FIs sign TDF scheme

A refinance scheme of BDT 10 billion in the name of Technology Development Fund/Upgradation (TDF) has been established in Bangladesh Bank.

This fund has been established in conformity of ‘Export Policy 2018- 21’ with a view to enhancing competitive capacity and sustainability of the export oriented industries.

The Sustainable Finance Department of Bangladesh Bank organized a signing ceremony of the Participation Agreement (PA) of 9 banks and 5 Financial Institutions (FIs) with Bangladesh Bank on Wednesday.

Mr. Ahmed Jamal, Deputy Governor was present in the signing ceremony as the chief guest. Mr. Md. Shahidul Islam, Executive Director, Mr. Khondkar Morshed Millat, General Manager along-with the concerned officials of Sustainable Finance Department were present in the event. General Manager of Sustainable Finance Department on behalf of Bangladesh Bank and the Chief Executives of Eastern Bank Ltd., Mutual Trust Bank Ltd., Mercantile Bank Limited., Southeast Bank Limited., Exim Bank Ltd., The Premier Bank Ltd., NRB Bank Ltd., Bangladesh Krishi Bank, IPDC Finance Ltd., IDLC Finance Ltd., Bangladesh Finance & Investment Co. Ltd., United Finance Ltd. and Infrastructure Development Co. Ltd. signed on behalf of their respective organizations.

Overview of Technology Development Fund (TDF)

Refinancing Scheme      : Technology Development Fund/Upgradation (TDF).
Purpose of the scheme  : For strengthening the capacity and increasing the sustainability and competitiveness of the units.
Industry Nature              : Must be export-oriented industries.
Fund Size                         : BDT 1000.00 crore
Loan Tenure                    : 5-10 years
Grace Period                   : Not more than one year.
Debt-Equity Ratio         : 70: 30
Interest rate                    :1. 5.00% on the loans having the tenure below five years
2. 5.50% from five years to below eight years
3. 6.00% from eight years to 10 years.

Entitled Organizations: 32 types of industries and 11 types of operations including ready-made garment factories, pharmaceuticals, software and IT-enabled services, jute goods and, footwear and leather goods.