Bangladesh approves $3.1 billion loan to finance oil and LNG imports

Committee documents show that Bangladesh's non-concessional loan committee approved a $3.1 billion financing package from the International Islamic Trade Finance Corporation for fuel and liquefied natural gas imports in fiscal year 2026-2027. Of this, $2.5 billion is earmarked for Bangladesh Petroleum Corporation to procure refined petroleum products, and $600 million is allocated to Bangladesh Oil, Gas and Mineral Corporation to procure liquefied natural gas. Each tranche must be repaid in full after six months. Interest is calculated at the 6-month Secured Overnight Financing Rate plus 1.70 percentage points, with an additional management fee of 0.20% per year. Note: As of October 1, the 6-month SOFR was 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 co-financing by Bangladesh Bank. The two sides held negotiations on June 29 and reached an agreement in principle on the financing scale.