http://www.thedailystar.net/newDesign/news-details.php?nid=79174
IDB funds Rahimafrooz to aid its battery export
Fawaz Abdul Nour, executive director of Islamic Corporation for Development (ICD), and Munawar Misbah Moin, managing director of Rahimafrooz Globatt Ltd, exchange documents after signing an agreement yesterday in Dhaka. Under the deal, ICD will fund $5.3 million for Rahimafrooz Globatt to develop its automotive battery export business. Feroz Rahim, chairman of Rahimafrooz Globatt, among others, was present.Photo: STARStar Business Report
Islamic Corporation for Development (ICD), the private sector financing arm of Islamic Development Bank (IDB), yesterday made its first ever investment in Rahimafrooz Globatt Ltd to develop the latter’s automotive battery export business.
ICD will fund $5.3 million for Rahimafrooz’s newest venture, as the company is going to double its annual automotive battery production capacity to reach 25 lakh units to capture a market share in developed countries by May.
Fawaz Abdul Nour, executive director of ICD, and Munawar Misbah Moin, managing director of Rahimafrooz Globatt, the local firm, signed an agreement to this effect.
“The investment deal marks a significant step for ICD in Bangladesh to provide finance to successful and professional business groups, such as Rahimafrooz,” said Nour.
“The investment, which is debt finance, is only the beginning. ICD is also eager to invest in the country’s private sector, including ICT, healthcare, agro market, telecommunication, power and SME,” he said.
He said such investments would help accelerate the growth of private enterprises and boost the country’s economy.
Moin of Rahimafrooz Globatt said the agreement would help accelerate the process of internationalisation of the company.
“We are going to double our annual production capacity of automotive batteries by May. The product has especially been designed to enter the rich markets, including North America, Europe, Korea and Australia,” he said.
The $14.5 million Rahimafrooz Globatt in Ishwardi EPZ nears completion and is under global expansion plan.
Earlier in January the project received the country’s first ever equity investment from Frontier Fund, a local partner of Brummer and Partners, Sweden’s largest hedge fund manager.
An equity fund is generally invested in firms by purchasing certain equity shares of those companies and sharing their profit with the investors. Investors can recover the fund only when the companies sell their shareholdings to other investors.
Thirty percent of the project cost has been raised through equity investments from Global Holdings Ltd and Brummer and Partners.
HSBC is also co-financing the venture.
Feroz Rahim, chairman of Rahimafrooz Globatt, among others, was present at the signing ceremony.
