To cater mid and longer term financial needs in order to meet diversified requirements of the broad spectrum of clientele comprising Local Corporate Houses and Multinational Companies operating in Bangladesh, we offer a range of financial services which includes, but not limited to:

Lease Financing

• Asset backed financing against industrial machineries, commercial equipments, office equipments, generators, vehicles, vessels, engines, etc.
• Financing may be extended upto 100% of the cost
• Usually for a tenure of 3 to 5 years
• Repayment through monthly or quarterly rentals
• Rentals may be equal or structured (step-up, step-down, bullet, etc.)
• Legal ownership remains in the name of IDLC throughout lease period
• Ownership is transferred to the client at the end of term

Sale & Lease Back

• Financing against any of the existing (already procured/in-use) industrial machineries, commercial equipments, office equipments, generators, vehicles, vessels, engines, etc.
• The ownership of the asset comes to IDLC at the of financing
• Financing may be extended upto 100% of the written down value (cost net of depreciation) depending on the condition of the machine
• Usually for a tenure of 3 to 5 years depending on original date of purchase and current condition of the asset
• Repayment through monthly or quarterly rentals
• Rentals may be equal or structured (step-up, step-down, bullet, etc.)
• Ownership is transferred to IDLC at the time of financing and remains in the name of IDLC throughout lease period
• Ownership is re-transferred to the client at the end of term

Term Loan

• For meeting various regular capital/fixed expenditures like balancing of production line, modernization of manufacturing process, expansion of capacity and space, etc.
• Usually for a tenure of 1½ to 5 years
• Repayment through monthly or quarterly installments
• Installments may be equal or structured (step-up, step-down, bullet, etc.)

Project Financing - Fixed cost

• For setting up of a new unit as addition to the existing product line and capacity, a new concern of an existing group, a new Joint Venture project of an existing company, etc.
• Required debt-equity ratio is maintained
• Financial solution for the entire project may be provided through mix of different financial tools from wide range of services offered by IDLC.
• Loan tenure varies based on product type. For fixed portion loan period may be upto 7 years
• Differ repayment structure is available depending on financial product

Preferred Equity Investments

• If clients raise funds through preferred share, IDLC corporate division makes financing by purchasing the shares
• IDLC gets payments usually through redemption of the preferred shares over the tenure

Bridge Financing

• For meeting the funding requirements of the borrower for any interim period
• Usually for shorter term
• Generally through bullet payments

Club Financing

• For relatively larger amount of financing IDLC, given its long track record, position and reputation in the financial industry, arranges funds in partnership with other FIs/Banks for the client.
• Type of facilities range from simple lease financing to a mix of lease and traditional banking products.

Refinancing of existing liabilities

• For matching the repayments with cash flows, allowing some more time for repayment, releasing working capital limits (which got exhausted due to meeting capital expenditures using short term credit lines) refinancing of existing good quality liabilities is made
• Terms and repayments are similar to those of term loans

Long Term Finance for Real Estate Developers

• Financing to developers for meeting the capital expenditures/construction costs of any specific real estate project, both residential and commercial
• A debt-equity ratio is maintained
• Disbursements are usually made in phases with progress of construction work
• Tenure of loan can be upto 7 years depending on nature of the project
• Repayment can be made every quarter or month through equal or structured installments

Loan to corporate houses to procure commercial space

• Financing to corporate clients for procuring office/commercial space
• Loan term may be upto 7 years or so
• Repayment can be made every quarter or month through equal or structured installments

Common Equity Investments

• Providing equity funds through purchasing common shares issued by the client

Factoring/Reverse Factoring/Distributor Financing

• For meeting the working capital requirements, we offer Factoring Facility to large companies against receivables with their institutional buyers/customers
• For facilitating better short term fund management, we also extend financing against their payables with sellers/vendors through Reverse Factoring
• Working capital is also offered for financing distributors through the manufacturers (corporate clients)
• In all the above cases a revolving short term limit is sanction and renewed every year based on some criterion
• For details please see the section on Factoring of Accounts Receivables

Specialized product: arrange special funds

• Financing is also arranged for large corporate houses through special funds from Local and International Development Agencies, Central Banks, Government agencies, etc. based on its availability and eligibility criterion of the project/financing
• IDLC uses its strategic alliances and local and international associations for arranging such funds
• Generally preferred rates are offered