Eastern Bank arranges $10m shariah-compliant financing for Samuda Shipping

Eastern Bank PLC (EBL) has arranged a $10 million shariah-compliant term financing facility for Samuda Shipping Limited (SSL), a concern of TK Group of Industries.

EBL acted as the arranger, security agent and account bank for the deal, according to a press release.

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The financing will fund the acquisition of MT Samuda, a 22,000-metric-tonne (MT) edible oil tanker, to support crude palm oil imports for TK-Samuda Group’s edible oil refineries from key regional markets, including Indonesia and Malaysia.

The vessel will also provide the group with flexibility for third-party chartering.

The $14 million acquisition is being financed through a $10 million, seven-year shariah-compliant facility from the Islamic Corporation for the Development of the Private Sector (ICD).

The deal-closing ceremony was held at The Westin Dhaka on Tuesday.

Hassan O Rashid, chief executive officer of EBL, said, “This deal brings together ICD’s multilateral development finance expertise and EBL’s deep knowledge of the Bangladesh market.”

“This acquisition is expected to contribute meaningfully to food security and agro-industrial capacity in Bangladesh,” he added.

Md Mostafa Haider, managing director of Samuda Shipping Limited, and Asheque Moyeed, acting general manager of the Banking Department at the Islamic Corporation for the Development of the Private Sector, also attended the ceremony, along with senior representatives of Samuda Shipping Limited, ICD and EBL.