The value of letters of credit (L/Cs) opened in Bangladesh in November reached an all time high of US$16.33 billion according to Bangladesh Bank data.

A substantial proportion of this was due to huge import orders by the Bangladesh Atomic Energy Commission (BAEC) for its Rooppur Nuclear Power Plant.

Nuclear L/Cs

Central bank data shows that BAEC alone opened L/Cs worth $11.38 billion in November through state-owned Sonali Bank to finance the power plant, the first of its kind in the country.

Bangladesh's import orders have never before reached even US$6 billion in a single month.

Russian backing

Russian contractor JSC Atomstroyexport will build the power plant at a cost of US$12.65 billion.

Moscow is providing 90 per cent of the funds for Bangladesh's largest-ever infrastructure project with Dhaka providing the remaining 10 per cent.

L/C arrangements

The BAEC will not need to open any further L/Cs for the plant as it has now placed all of its import orders.

The L/Cs will be settled using Russian provided credit with a tenor of 30 years and a 10-year grace period.

Loan repayments will begin in March 2027, three years after the 2,400 megawatt plant is due to be completed.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.