Himu Garments a renowned knit garments exporter has already taken a project of expanding their business by establishing a green building having energy efficient capital machinery. To do that they have been assisted by XYZ Bank PLC. The said firm brought their capital machineries and placed them in their new building. Before setting up those machineries the owner of that firm bought fire fighting equipment and electrical set up locally. XYZ Bank PLC opened some Upas L/C in favour of Himu Garments to import those capital machineries. The Upas L/C were initially funded by the off-shore banking unit of XYZ Bank PLC. At the end of the acceptance period of related L/C, the owner of Himu Garments came to know about refinancing facilities of Bangladesh Bank like GTF and TDF.

He wants to avail refinance as he requested XYZ Bank PLC to go for the refinance facilities. Now thinking about the higher interest charges of BDT term loan the owner desperately wants to avail one of refinancing facilities of BB. The cost of capital machineries are USD 3.5 million. Some other components as follows :

(i) Local procurement cost is BDT 10·00 crore.
(ii) XYZ Bank PLC already created a term loan against the import payment of capital machineries 2 month ago.
(iii) Around 70% of imported machineries are energy efficient.
(iv) XYZ Bank PLC is a private commercial bank having 7.5% NPL.
(v) In both cases BB will charge 1% interest to PFIs and the client will be charged 5% (maximum).
(vi) The client has already paid 20% of import cost as margin.
(vii) The firm is also thinking about applying for refinancing facilities for a Green Building.