ACI Motors lands Tk 126cr in foreign investment
ACI Motors is set to secure an equity-based foreign investment of Tk 126 crore from two companies as it landed its first foreign investment. The fund from the Netherlands and Singapore would be used to accelerate business growth and expand existing manufacturing facilities of ACI Motors. The fund will be raised through the issuance of 23.33 lakh convertible non-cumulative preference shares of Tk 100 each at a premium of Tk 440.The arrangement will reduce ACI’s shareholding in ACI Motors to 52.7 per cent from 65 per cent.ACI Motors became the distributor of Yamaha Motorcycles in 2016. The company represents some of the world’s leading construction equipment manufacturers, providing backhoe loader, soil compactor and tandem roller, among others. In 2017, ACI Motors added China’s leading brand Lovol’s construction equipment to the wheel loader and mini excavator segment.Assets were valued at Tk 1,407 crore and liabilitiesTk 1,115 crore as on 31 March. ACI Motors logged a profit of Tk 98.6 crore from 19 July 2019 to 20 March this year. However, ACI incurred a loss of Tk 119.5 crore during the same period owing to higher operating costs and finance cost. In the last three quarters, ACI’s total finance cost was Tk 352.6 crore and the operating cost totalledTk 1,264.2 crore. As of 31 March, the group’s long-term bank loan stood at Tk 826 crore and the short-term loan Tk 2,978 crore. The stocks of ACI, listed on the Dhaka Stock Exchange since 1976, rose 2 per cent to Tk 273 on Thursday.
StanChart executes Bangladesh’s first-ever blockchain LC transaction
Standard Chartered has executed the country’s first-ever blockchain transaction by issuing a letter of credit for Viyellatex, in a development that can go on to make the process of trade, both at local and global levels, much streamlined.Under the transaction, Viyellatex — which exports $300 million worth of garment and textile items and counts Puma, S Oliver, Espirit, Marks and Spencer and Sainsbury among clients — imported textile items from Viyellatex Spinning. Standard Chartered acted as the issuing bank for the applicant as well as the advising bank for the beneficiary of the letter of credit (LC). Most of the garment exporters source raw materials such as textiles and yarn as well as accessories locally through inland LCs, which involve tedious paperwork.As per the arrangement, remitters will be able to send in their hard-earned money in real-time by opening a mobile wallet with Malaysian fintech firm Valyou, a subsidiary of Telenor Group. The amount from Valyou would then be wired through Standard Chartered’s operations in Malaysia and Bangladesh. Once in Bangladesh, bKash would distribute the funds, ending the chain of cross-border transaction that harnesses the power of technology. This means migrant workers in Malaysia would be able to settle their cross-boundary transactions in real-time with just a few clicks on their mobile phone, in an arrangement not seen before in Bangladesh.
Prime Bank teams up with PriyoShop
Prime Bank Limited and country’s leading online marketplace, PriyoShop, have joined hands to facilitate MSME financing to e-commerce merchants without any collateral. As per an alliance formed recently, the merchants of PriyoShop will avail easy access to MSME loanfrom Prime Bank. It will be a big boost for the country’s rapidly growing e-commerce sector as eligible merchants of PriyoShop will now enjoy collateral free loan up to BDT 50 lakh and other tailor-made financial solutions.The merchants can also avail a wide range of deposit products and free Internet Banking – ALTITUDE – for conducting broad range of e-transactions. They will need two-year business experience and recommendation letter from PriyoShop. The MSME entrepreneurs can apply for loan from the comfort of their office or home as Prime Bank has assigned dedicated Relationship Manager for exclusive service to the valued merchants of PriyoShop. Under the arrangement, the merchants will also get working capital (CC, OD and Demand Loan), Term Loans for Fixed Asset Purchase and Capital expenditures, International Trade solution- LC, LATR, IDBP etc., Bank Guarantee, Work Order etc.
City Bank has recently signed an agreement with Shohoz, one of the fastest growing
City Bank has recently signed an agreement with Shohoz, one of the fastest growing start-ups in Bangladesh with a one stop solution for multiple services. Under this agreement, City Bank will be facilitating online digital collections and payments to Shohoz through the bank’s digital platform. Sheikh Mohammad Maroof, Additional Managing Director of City Bank, and Ms. Maliha M Quadir, Managing Director of Shohoz, signed the agreement on behalf of their respective organization.