28th Jan 2015 08:58
LONDON (Alliance News) - Beximco Pharmaceuticals Ltd said Wednesday it has entered into a new loan agreement with BHF-Bank Aktiengesellshaft in Germany to borrow up to USD51.6 million to part finance the expansion of its production facilities in Bangladesh.
The loan is secure on a new plant and machinery to be bought. It has an interest rate of 2.25% per year about LIBOR, and the lender will receive management fees and commitment fees, the company said.
"We are delighted to have had formal approval for the new loan agreement, which enables us to fund the purchase of new plant and machinery to expand our facilities in Dhaka," said Managing Director Nazmul Hassan in a statement. "The investment is aimed at securing the company's current and future growth, increasing the production capacity and adding new products in the portfolio to cater to the demand of domestic and international markets."
Shares in Beximco are trading down 0.3% at 18.30 pence Wednesday, having fallen to 17.50p at the open.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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