HSBC Bangladesh has arranged $46 million in low-cost foreign currency for apparel exporter Viyellatex for the purchase of goods, equipment and technology from suppliers in Switzerland, Japan, India, Germany and the United Kingdom for a new spinning mill. The loan covers 70 per cent of the total investment being made by the Viyellatex Group in this project.

The bank said this was the country's first private sector agreement with Swiss Export Risk Insurance SERV, Switzerland's export credit agency, according to media reports in Bangladesh.

“Interest rate of the loan is much lower than other US dollar loans in the international market,” Viyellatex Group chairman KM Rezaul Hasanat told a leading English-language daily.

The financing involves cooperation between HSBC and Proparco, a French financial institution focused on funding sustainable development projects.

The spinning mill has already been constructed and commercial production will begin after the Islamic festival of Eid-ul-Azha. Containing 92,000 spindles, the mill will produce 50 tonnes of yarn per day, said Hasanat. (DS)

Fibre2Fashion News Desk – India

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