ADB will provide Dhaka Bank with guarantees to cover all or part of the risks associated with Dhaka Bank's add confirmation and/or discounting of qualifying trade finance transactions issued by selected banks in ADB's Developing Member Countries
Dhaka Bank Limited has recently signed an agreement with ADB to engage in ADB’s trade and supply chain finance program (TSCFP) as a confirming bank to expand its trade facilities.
Dhaka Bank Limited is one of the pioneer banks to get enlisted as a confirming bank of ADB.
The CEO Emranul Huq and Additional Managing Director Mohammad Abu Jafar of Dhaka Bank Limited and Can Sutken, Senior Investment Specialist of ADB's Private Sector Operations Department signed this historic agreement on August 18, according to a press release.
As per the confirming bank agreement,ADB will provide Dhaka Bank with guarantees to cover all or part of the risks associated with Dhaka Bank's add confirmation and/or discounting of qualifying trade finance transactions issued by selected banks in ADB's developing member countries.
Adding payment confirmation to the LCs will secure the export receivables which will give comfort to the Bangladeshi exporters. Thus, it will help to have a direct impact on the growth of Bangladesh economy.
Emranul Huq said: “Getting enlisted as a confirming bank with ADB is a momentous milestone for Dhaka Bank Limited. This agreement is going to further accentuate the long term relationship cherished by both organizations. The exporters of Bangladesh will be highly benefitted as their export proceeds will be secured by Dhaka Bank’s payment confirmation.”
“This is another important step in our support for trade in Bangladesh,” said TSCFP Relationship Manager Can Sutken.
He added: “This will help Dhaka Bank grow its business and boost trade by Bangladesh companies, which will help grow the economy and drive employment.”
Dhaka Bank started its relationship with ADB in the year 2009 by enlisting as an issuing bank with ADB’s TSCFP program. With the new confirming bank agreement, Dhaka Bank is going to explore new business avenues to further enhance its business opportunities and strengthen its ties with ADB.