CORPORATE FINANCIAL

SERVICES

There are very few who can provide the full spectrum of corporate finance advice to middle market businesses both public and private – LankaBangla Finance Limited team can.
Our Corporate and Institutional Service team is one of the leading idea providers of right funding idea for your current situation in Bangladesh. As a leading financial firm, our Emerging and Commercial Business Unit team help you to access 80% of your invoice in advance as cash. Our team has been carefully built to provide the right mix of experience and creativity in negotiation, clarity of thought in project management, a worldwide network to identify buyers and investors and the technical support that only a large accounting business can provide. Allied to these teams we have specialist Project and Structured Finance Unit teams that both provide essential support to our growing clients.
When the going gets tough, the tough stay put and never flinches. We don’t either. Through the credit crunch, depressed commodity prices, and global economic turmoil, we never left the side of the people who’ve made LankaBangla Finance Limited an economic powerhouse. We continue to custom build solutions to help our clients do what they do best—lead. In-depth knowledge and experience in LankaBangla Finance Limited is in part what makes us different and gives us the strength to stay the course with our clients. We’re proud to offer a wide range of custom-built capital, cash management, and financial market solutions in order to help our clients succeed.
Find out more about us and the clients we've cared for or call one of our service heads to find out more. We look forward to working with you on your deal.
The value we deliver is demonstrated through our unique relationship model, industry expertise, and local market advantage.

Project & Structured Finance

Our products and services are just a start - our insightful guidance and support make us a business partner you can rely on.

Project and Structured Finance is one of the key focus areas for LankaBangla Finance Limited (LBFL). The Project and Structured Finance Unit (P&SFU) has institutionalized capabilities to successfully manage the unique and multidimensional process of project finance transactions led by customized product offering approach.
We are typically engaged from the very early stages of implementing projects. Thus, we are able to analyze the viability of projects from different perspectives and ensure cohesive & comprehensive project development that takes all aspects into consideration from day one. Specifically, we review alternate financing solutions and risk-mitigation concepts for the project.
LankaBangla Finance Limited devises solutions that balance the requirements of customers, suppliers and capital providers. We greatly benefit from our well- and long-established relationships with members of financial community of the country. Thus we can offer competitive rates in order to implement the projects.
We are here to assess your financial need, design the most cost effective mode of finance for your business and give you a complete solution to share the joy of success while Growing Together.

Classification of Services

  • Project
    Finance

    Whether you are aspiring to mold your hard achieved...

  • Structured
    Finance

    Analyzing the prospect of the project through due...

  • Corporate Advisory
    Services

    A one stop solution for Corporate Advise.

Project Finance

Features & Services

Whether you are aspiring to mold your hard achieved experience and savings into your own firm or you are one of the groups who needs to expand and venture into synergic new areas to reach the excellence. Be it a simple brick kiln or be it a complex industrial machinery production facility, we are no less dedicated than you are in fulfilling your dreams; from feasibility study to complex multilateral fund arrangement facility, we ensure proper nourishment of your brainchild project from the get go and well into production stage.

  • Complete project analysis to ensure viability of the project
  • Enhancement measures to strengthen the project.
  • Fund arrangement and determining the right mix of financing plans
  • Extend our network to assist you in driving up sales, expansion and networking.

Structured

Finance

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

Classification of Services

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).

LBFL 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 (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

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

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
  • LBFL 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, LBFL can assist clients in obtaining IPFF fund for infrastructure projects, such as power plants, toll roads and bridges, port facilities etc.
  • LBFL 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.

Corporate Advisory
Services

Merger & Acquisition

Companies can engage in merger and acquisition activities for a multitude of strategic and tactical reasons, but essentially to achieve synergy by combining complementary resources. We can provide advisory service to either the target company or the buyer company through various stages of such a deal.

Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or collateralized mortgage obligation (CMOs), to various investors.

Joint-Venture Matchmaking

A joint-venture arrangement leverages on the combined expertise of both parties involved. Our market intelligence and relationship with a large number of corporate clients allow us to assist foreign and/or large local companies in finding the right Joint-Venture (JV) partner in Bangladesh.

Feasibility Study

When our clients explore a new business idea, we can help them to transform that idea into a concrete plan by undertaking a Feasibility Study. We analyze various aspects affecting the outcome of the project, such as demand-supply scenario, target market, competition, regulatory issues, technology and skills requirement, environmental aspects etc. and develop a detailed financial model to have a better understanding of the risk and return potentials of the project.

our insightful guidance

& support make us a business partner you can rely on.

Project and Structured Finance is one of the key focus areas for LankaBangla Finance Limited (LBFL). The Project and Structured Finance Unit (P&SFU) has institutionalized capabilities to successfully manage the unique and multidimensional process of project finance transactions led by customized product offering approach.

Our Services

Offering

  • Great service begins with great ethics at the core
  • Our relationship with you starts with our amazing service ethics.
  • Contact us at the nearest branch of your locality.

Our EXPERTISE

Are

  • Dedicated team of experts to handle all your financing needs.
  • Extensive research into your industry and business to ensure project success.
  • Dedicated relationship manager for single point communication.
  • Specialist managers to help you expand your vision and proper decision making.
  • Service delivery in shortest possible time

UNIQUE

Relationship

  • Every one of our clients has a dedicated Relationship Management Team that knows their business.
  • These Relationship Management Teams provide a knowledgeable and empowered single point of contact for all of your business financial requirements.
  • LankaBangla Finance Limited prides itself on employee retention and development, and therefore you can expect to have continuity with the people in which you have built a relationship.

INDUSTRY

Expertise

  • To better support our customers, our business is specialized into different distinct units
  • Each specialized group has its own Relationship Management Teams that pride themselves on their sub-specialties
  • Through their focus on industry sub-specialties, our Relationship Management Teams have developed a wealth of understanding about their industry; knowledge which in turn benefits our clients.
  • Our credit teams are also aligned with our industry approach to business to ensure our analysis is in tune with current market realities.
  • Many of our Relationship Management Teams are supported by industry specialists (e.g. technicians) that are intimately involved with our processes to ensure effective client relations.

LOCAL MARKET

Advantage

  • We are dedicated and committed and have been serving this market for over 15 years.
  • Being a local provider, our credit decisions are made here in Bangladesh, which results in responses that are in tune with our local market, in a timely manner.
  • We are where you are. We have a wide market presence, with Corporate Financial Services locations in Bangladesh. Our branches extend to communities in every corner of the province.

Fees & Charges

  • Documentation fee

    A nominal fee for documentation of the application process

  • Service charge

    LankaBangla Finance Limited applies the most competitive service charge rates in return for costs incurred in maintaining your receivables accounts, realizing collections and similar services.

  • Interest

    Applied in return for the financing provided by LankaBangla Finance Limited.