Bangladesh’s Bashundhara Group is planning a BDT10bn (US$117.7m) investment to significantly increase its manufacturing capacity through the establishment of a third production unit.
Bashundhara's daily production capacity will reach 25,000t, according to The Daily Star. The existing units produce around 14,000tpd.
"Our target is to export to the Seven Sister states in India as the demand of cement in Bangladesh and India's northern states will increase rapidly in the coming days due to development activities," said Khandoker Kingshuk Hossain, chief marketing officer.
To implement the project, the company is requesting around BDT7bn of funds from banks. Bank Asia is leading this syndicated term loan for Bashundhara Industrial Complex, while other participants include Dhaka, First Security Islami, Pubali, Social Islami and United Commercial banks.
Bank Asia's assessment found potential for investment by the cement sector as there is room for expansion. "We considered the demand growth of cement market in Bangladesh for financing Bashundhara Group as well as their need to expand production," said Arfan Ali, president and managing director of Bank Asia.
Bank Asia is expected to provide BDT1.50bn, while the other banks will deliver the remaining amount. The syndicate approved the loan for a seven-year term.
