Bangladesh Approves $3.1 Billion Loan for Oil and LNG Import Financing

Deep News
7 hours ago

Committee documents show that Bangladesh's non-concessional loan committee has approved a $3.1 billion financing package from the International Islamic Trade Finance Corporation for fuel and LNG imports in the 2026 to 2027 fiscal year.

Of the total, $2.5 billion is specifically allocated to BlackRock Energy & Resources Trust (BGR) subsidiary Bangladesh Petroleum Corporation for the purchase of refined petroleum products, while $600 million is directed to Bangladesh Oil, Gas and Mineral Corporation for LNG procurement.

Each disbursement must be fully repaid after six months. Interest is calculated at the six-month Secured Overnight Financing Rate (SOFR) plus 1.70 percentage points, with an additional management fee of 0.20% per year. Note: As of October 1, the six-month SOFR stood at approximately 3.68%.

The International Islamic Trade Finance Corporation will contribute $600 million from its own funds. The remaining $2.5 billion will be arranged through a co-financing facility with Bangladesh Bank.

The two parties began negotiations on June 29 and reached an agreement in principle on the scale of financing.

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