Himalayan Dressers Ltd. is a renouned knit garments exporter. The firm has already taken a project to expand their business by establishing a Green Building having energy efficient capital machinery. To do that they have been assisted by XYZ Bank Ltd. The said firm bought their capital machineries and placed them in their new building. Before setting up those machineries the owner of that firm bought the fire fighting equipment and electrical set up locally. XYZ Bank Ltd. opened some Upas L/Cs favouring Himalayan Dressers Ltd. to import those capital machineries. Those Upas L/Cs were initially funded by the off-shore banking operations of XYZ Bank Ltd. At the end of the acceptance period of related L/Cs the owner of Himalayan Dressers Ltd. came to know about refinancing facilities of Bangladesh Bank like GTF and TDF and he wants to avail them as he requested bank to go for those refinance. Now thinking about the higher interest charges of BDT term loan the owner desperately wants to avail one of the refinance facilities of Bangladesh Bank. The cost of capital machineries are 3-5 million USD. Additional information are given below :

1. Local procurement cost is BDT 10-00 crore.
2. XYZ Bank Ltd. already created a term loan against the import payments of capital machineries two month ago.
3. Around 80% of the imported machineries are energy efficient.
4. XYZ Bank Ltd. is a private commercial bank having 7.5% NPL.
5. In both cases Bangladesh Bank will charge 1% to PFLs and the client will be charged 5% (maximum).
6. The client has already paid 20% of import cost as equity.
7. The firm is also thinking about applying a refinance for Green Building.

Considering the above mentioned clauses answer the following questions :

(a) Analyzing those aspects which facility do you think is more favourable for the firm?
(b) How much money the owner can get as a loan for the project under refinancing? Explain.
(c) What will be the allowable loan period? What will be the applicable grace period?
(d) Is the applicant eligible for further application for green building? Explain.
(e) If the firm owner uses the loan for other purpose, what will be the consequences for PFIs and what are the actions to be taken?