HSBC arranging $1.3 billion for chemical industries

The Hongkong and Shanghai Banking Corporation Limited (HSBC) has arranged USD1.3 billion financing for Bangladesh Chemical Industries Corporation (BCIC) to set up its Ghorasal Polash Urea Fertilizer Project (GPUFP).

This is the largest financing backed by the Export Credit Agency (ECA) ever completed in Bangladesh.

This new urea fertilizer plant will be replacing two of BClC's oldest plants — Urea Fertilizer Factory Ltd (UFFL) and Polash Urea Fertilizer Factory Ltd (PUFFL).

The new plant will produce 9.24 lakh metric tonnes per year using the same volume of natural gas as in the two old plants combined. The installation of greener and more fuel-efficient technology will produce high quality urea fertilizer and significantly improve agricultural yields.

This was disclosed at the document exchange on loan agreement programme organised by BCIC and HSBC at Inter Continental Dhaka this evening.

Earlier on November 22, BCIC signed loan agreement for $1.3 billion with Japan International Cooperation (JBIC), Bank of Tokyo-Mitsubishi UFJ Ltd (MUFG) and HSBC. Of the total credit HSBC will provide $300 million and rest $1billion will be arranged by JIBC and MUFG.      

The repayment period of the credit is 14 years with four years of the construction period.

Speaking at the programme, Nurul Majid Mahmud Humayun said, it will be a modern, sophisticated, energy-efficient and green fertilizer factory with full environment friendliness.

He said it will be first-ever fertilizer factory in Bangladesh where the environmental pollutant carbon-di-oxide will be captured from the primary reformer flue gas.