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Berger Paints Bangladesh Ltd is going to borrow US$ 60 million from its UK-based parent company J&N Investments (Asia) Limited.
The loan will be utilised to open letters of credit (LC) for raw material imports, and will be disbursed in phases, based on the company's business requirements, Berger said in a press release.
Berger's board of directors has already approved the regulations for the planned loan agreement, and the organisation is now applying to the Bangladesh Investment Development Authority (BIDA) for its approval.
The interest rate and repayment period for the credit will be determined by regulatory authorities during the approval process.
"The decision to take the loan was foreseeable since most banks are currently experiencing a shortage of dollars," said Sazzad Rahim Chowdhury, director and chief financial officer at Berger.
"At Berger, we wanted to ensure that we have access to sufficient raw materials as per our requirements and serve our honourable customers seamlessly. It is also a part of our commitment to extend a hand to the country's foreign currency reserve," he added.
Holding the highest reputation in the market for its innovation and responsible business operations, Berger Paints Bangladesh became listed with the Dhaka Stock Exchange in 2006 and has a paid-up capital of Tk 460 million.
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