Export Development Fund (EDF)
The Export Development Fund established in 1989 is a pre-shipment incentive/financing in foreign exchange aimed at facilitating and supporting manufacturer exporters for input procurements to penetrate the global market. The incentive is available to direct and deemed exporters to boost export. Authorized Dealer (AD) banks can get refinance in US Dollar from the EDF against their foreign currency loans to manufacturer-exporters for input procurements.
Key Features:
Purpose: To procure raw material inputs against back-to-back import LCs, inland back-to-back LCs in foreign exchange and eligible bulk import LCs for local delivery to export manufacturers.
Mode of Retirement: From Export Proceeds.
Rate of Interest: Interest rate at exporter/client level: 6-month SOFR + 1.5% p.a.
Where Bangladesh Bank’s share is 6-month SOFR+0.5% p.a. and AD bank’s share is 1.0% p.a.
Period of EDF:
Tenure of EDF loan is normally 180 days from dates of disbursement, extendable by Bangladesh Bank up to 270 days upon application to Bangladesh Bank explaining the necessity of longer period for repatriation of export proceeds. .
Eligibility:
Any manufacturer exporters including BGMEA, BKMEA, FLAXA, BBPMEA, BFEA, BFFEA, BTMA, BDYEA, BPAMEA, BPGMEA, BCMEA, Type-B(Joint venture companies with foreign and Bangladeshi ownerships) and Type-C (Firms with 100 per cent Bangladeshi ownerships) units operating in EPZs will be eligible for financing from EDF .
Interest Rate during Gap Period:
ADs may charge additional interest to borrowers 1% p.a. for the period between ‘import payments from sources of ADs’ And ‘receipts of refinancing from EDF’.
The limit for a member mill:
| (USD in million) | ||
|---|---|---|
| Sl. No | Name of Associations | Maximum Limit (USD) |
| 1 | Bangladesh Garment Manufacturers and Exporters Association (BGMEA) | 20 |
| 2 | Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) | 15 |
| 3 | Footwear Leathergoods & Accessories Exporters Association (FLAXA) | 15 |
| 4 | Bangladesh Bicycle & Parts Manufacturers and Exporters Association (BBPMEA) | 10 |
| 5 | Bangladesh Furniture Exporters Association (BFEA) | 10 |
| 6 | Bangladesh Frozen Foods Exporters Association(BFFEA) | 5 |
| 7 | Any sector other than the mentioned associations | 10 |
The limit for a member exporter:
| (USD in million) | |||
|---|---|---|---|
| Sl. No | Name of Associations | Items | Maximum Limit (USD) |
| 1 | Bangladesh Textile Mills Association(BTMA) | Cotton and other fibres | 20 |
| 2 | Bangladesh Dyed Yarn Exporters Association(BDYEA) | Unprocessed yarn and chemicals | 10 |
| 3 | Bangladesh Packaging & Accessories Manufacturers and Exporters Association (BPAMEA) | Raw materials | 2 |
| 4 | Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) | Raw materials | 1 |
| 5 | Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) | Raw materials | 1 |
Besides, manufacturer-exporters across any sector can avail refinancing up to export performance over the preceding 12 months or USD 500,000 whichever is lower. If an exporter imports both in bulk and under B2B arrangements or operates under multiple associations, the exporter may only avail the maximum limit applicable to any one association.
Ref: FEPD-1 Circular 24, dated July 23, 2026.