BRAC Bank and Ace Alliance Power Limited (AAPL) signed an Interest Rate Swap (IRS) deal. Under the agreement, BRAC Bank provided hedging for AAPL’s exposure in LIBOR against their borrowing of USD 68.60 million for 10.3 years.
This deal is one-of-a-kind as it is the highest tenor Interest Rate Derivative for any private commercial bank in the industry. Ace Alliance Power, a 149MW independent power project situated at Kodda, Gazipur, is jointly owned by Summit Corporation Limited (SCL) and Summit Power Limited (SPL). In the current global market scenario with increased volatility in interest rates, AAPL found it imperative to hedge against losses arising from floating rate loan. BRAC Bank was able to provide the most effective derivative solution- Interest Rate Swap - to hedge the LIBOR into a fixed rate.
Managing director and CEO of BRAC Bank, Selim RF Hussain, handed over a commemorative crest to Azeeza Aziz Khan, director, Summit Group, on the occasion at the bank’s head office in Dhaka on 27 March. He also thanked Summit Group for their contributions to the country particularly in power generation and employment creation. Shaheen Iqbal, head of treasury and financial institutions, Tareq Refat Ullah Khan, head of corporate banking, Muniruzzaman Molla, head of operations from BRAC Bank and Faisal Karim Khan, additional managing director, Summit Corporation, Syed AK Rahat Jaman Sohel, executive director, Summit Corporation , Engr. Md. Mozammel Hossain, managing director, Ace Alliance Power and others were also present on the occasion.