Our service
spectrum covers

Analyzing the prospect of the project through due diligence and feasibility study
Preparing a structure for risk allocation through contractual arrangements
Providing optimum financial solution according to the need of the client(s) which best suits with the type & nature of the project

Syndicated
Finance

A syndicated financing/loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as arrangers. To provide the financing needs of the clients for the purpose of their Greenfield projects or BMRE ventures, we raise the funds on a best efforts basis by arranging a syndication of banks and non-banking financial institutions. In a syndication deal, the client has to maintain relationship only with the Lead Arranger, instead of a number of financial institutions, thus making the process more simple and efficient.

  • Syndicated Term Finance: The syndicated term loan is provided to meet the long term fund requirements of the corporate client(s) or new project(s).
  • Syndicated Working Capital Loan: The syndicated loan working capital loan is provided to meet the short term fund requirements of the corporate client(s) or new project(s).

LBFPLC can play the role of both an Arranger and Security Agent in a syndication deal.

As a Lead Arranger, our responsibilities include:

  • Conducting due diligence of the client
  • Preparing Information Memorandum (IM) & Financial Model
  • Distributing IM & FM to the prospective lenders i.e. Banks, NBFIs etc.
  • Negotiating with prospective financiers
  • Coordinating legal and regulatory requirements for deal closing
  • Preparing legal documents and coordinating disbursement.

As a Security Agent, our responsibilities include:

  • Acting as the contact point between client and financiers
  • Taking proper initiatives to make disbursement of the fund
  • Coordinating subsequent repayment by the client
  • Coordinating completion, maintenance and required amendments of related documents
  • Coordinating compliance of various covenants of the facility
  • Structuring periodic renewal of the pricing of the facility
  • Resolving various issues related to the deal

Preferred
Stock

Preferred stock (also called preferred shares, preference shares or simply preferred) is an equity security with properties of both equity and debt instrument, and is generally considered a hybrid instrument. Preferred are senior (i.e. higher ranking) to common stock, but subordinate to bonds in terms of claim (or rights to their share of the assets of the company). Preferred stock usually carries no voting rights, but may carry a dividend and may have priority over common stock in the payment of dividends and upon liquidation. We provide financial solutions designing preference shares with different features.

Our service spectrum covers:

  • Conducting due diligence of the client
  • Designing the most cost effective instrument
  • Preparing Business Proposal/Prospectus
  • Submission of Prospectus to the appropriate regulatory authority through a Merchant Bank
  • Distributing the Business Proposal/Prospectus to the prospective investors
  • Coordinating legal and regulatory requirements for deal closing
  • Preparing legal documents and coordinating disbursement
  • Ensuring the role of Trustee

Fixed Income
Securities

A bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity. Interest is usually payable at fixed intervals (semiannual, annual, and sometimes monthly). Very often the bond is negotiable, i.e. the ownership of the instrument can be transferred in the secondary market.

We offer the following types of bonds but these are not mutually exclusive, and more than one of them may apply to a particular bond.

  • Fixed rate bonds have a coupon that remains constant throughout the life of the bond. A variation is stepped-coupon bonds, whose coupon increases during the life of the bond.
  • Floating Rate Notes (FRNs, Floaters) have a variable coupon that is linked to a reference rate of interest, such as Weighted Average Cost of Deposit (WACD) declared by Bangladesh Bank. For example the coupon may be defined as WACD + 3% margin. The coupon rate is recalculated periodically, typically every one or three months.
  • Zero Coupon Bonds (zeros) pay no regular interest. They are issued at a substantial discount to par value, so that the interest is effectively rolled up to maturity (and usually taxed as such). The bondholder receives the full principal amount on the redemption date. Income derived from ZCBs is tax exempted except Bank, NBFIs and Insurance Companies.
  • Convertible Bonds let a bondholder exchange a bond to a number of shares of the issuer's common stock. This sort of bond gives extra sweeteners for the investors to maximize investment return.
  • Subordinated Bonds are those that have a lower priority than other bonds of the issuer in case of liquidation. In case of bankruptcy, there is a hierarchy of creditors. The first bond holders in line to be paid are those holding what is called Senior Bonds. After they have been paid, the subordinated bond holders are paid. As a result, the risk is higher. Therefore, subordinated bonds usually have a lower credit rating than senior bonds. Bangladesh Bank allows Bank and NBFIs to meet Tier-II capital requirement under Basel-II through issuance of Subordinated Bonds.

Our service spectrum covers:

  • Conducting due diligence of the client
  • Designing the most cost effective instrument
  • Preparing Business Proposal/Prospectus
  • Submission of Prospectus to the appropriate regulatory authority through a Merchant Bank
  • Distributing the Business Proposal/Prospectus to the prospective investors
  • Coordinating legal and regulatory requirements for deal closing
  • Preparing legal documents and coordinating disbursement
  • Ensuring the role of Trustee

Private
Equity

To develop new projects or expand existing project, a company can raise equity by selling its shares to targeted individuals or institutions. In this way, the company can achieve a broader equity base, as well as have a strategic equity partner with access to complementary resources, which can contribute towards accelerated growth. Moreover, a shareholder of the company can also sell all or part of his shares for capital gains.

Our service spectrum covers:

  • Conducting due diligence of the client
  • Following holistic approach to assess the business potentiality of the client
  • Assessing the Growth Drivers of the entity
  • Develop detailed Financial Model
  • Preparing Investment Proposal
  • Distributing the Investment Proposal prospective investors
  • Coordinating legal and regulatory requirements
  • Preparing legal documents and channeling investors’ funds

Special Customized
Fund

  • LBFPLC is a Participating Financial Institution (PFI) of the Investment Promotion and Financing Facility (IPFF), a special fund sponsored by the World Bank and Bangladesh Bank. The fund promotes private sector participation in infrastructure investment by offering financing with attractive repayment terms which is suitable for the projects having sluggish initial cash flows but having very good further prospects & related to public interest.
  • As a PFI, LBFPLC can assist clients in obtaining IPFF fund for infrastructure projects, such as power plants, toll roads and bridges, port facilities etc.
  • LBFPLC being PFI can assist the clients to obtain the low cost funding through Green Banking & CSR Department of Bangladesh Bank:
  • Assisting the green bricks manufacturer avail the ADB funded refinance from Bangladesh Bank under the ‘Refinance Scheme of Brick Kiln Efficiency Improvement’.
  • Assisting the entrepreneurs of the relevant businesses avail the Bangladesh Bank own funded refinance in the specified sectors as per the BB guidelines.

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