Leasing in Bangladesh:

Bangladesh is a developing country, but the national calamity and political unrest sluggish the industrial growth as well as economic growth of the country. Inspite of all these hindrance the growth of leasing companies is a significant indication of our bright prospects.

The traditional sources of funds of our country in the financial market are – the Commercial Banks, DFIs and the stock exchange. But these sources are not enough to effectively meet the growing demand of capital investments for industrialization of the country. And the backdrop of such scenario, leasing companies came forward in the 80s to serving as an alternative source of financing. At present there are 11 leasing companies operating there business.

The name of the leasing companies:

1. Industrial Development Leasing Company of Bangladesh Ltd. IDLC
2. United Leasing Company
3. Uttara Finance & Investment company Ltd.
4. Phonenix Leasing company Ltd
5. Bay leasing & Investment Ltd.
6. International Leasing & Finance Company Ltd.
7. GSP Finance company (BD) Ltd.
8. Prime Finance & Investment Ltd.
9. Vonike
10. Prime Bank Ltd.

COMPANIES AT A GLANCE

IDLC:
Industrial development leasing Company of Bangladesh limited is established in 1985 as a joint venture public Limited Company with the multinational collaboration of International Development Finance Institution ,Commercial  Banks, Insurance Company and Foreign Leasing Corporation. During the past fourteen  years of its operation, IDLC has played a catalytic role in providing alternative source  of term and capital asset financing to the private sector. IDLC’s  primary focus has been in the area of  3-5 year term financial  leasing with particular  emphasis on balancing, modernization, replacement and expansion( BMRE) of existing units. With its pioneering vision IDLC has not only established lease financing as an efficient  and quality financial service but also laid the foundation for the creation of ten other leasing companies. Today lease financing has grown to be an industry of Taka 3.5 billion per  annum.

IDLC  and its institutional  shareholders have upheld their commitment towards the development of the financial service sector by offering high quality service to local entrepreneurs.To ensure  steady  and long term growth as well as to sharpen its competitive  edge in a changing  and challenging business environment. Shortterm Finance which have broadened its customer  base and are expected to contributed significantly to IDLC’s growth and  profitability.

IDLC established its first branch office in Chittagong in 1990. In January 1993, the company offered its shares to the public. In terms of market capitalization, it is ranked among the top 20 listed companies in both Dhaka and Chittagong Stock Exchange.

Services offered by IDLC:

Lease  Financing

IDLC  provides lease financing for all types of manufacturing and service equipment including vehicle, computer and medical equipment to all the major industrial and service  sector.

Short Term Finance

With an objective to provide solution to working capital problems, STF Unit provide different financial services to clients. Emphasis is given to identifying clients’ actual need and in providing customized  service to cater them.

House Financing

IDLC extends loan facilities to Individuals  for purchase of apartments, Business houses professionals  for purchase of commercial  spaces (office space chamberdisplaycentre etc.)