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 inputs against back-to-back import LCs/inland back-to-back LCs in foreign exchange for export purposes.

Mode of Retirement: From Export Proceeds.

Rate of Interest: Interest rate at exporter/client level: SOFR (Overnight) + 1.5%

Where Bangladesh Bank’s share is SOFR+0.5% and AD bank’s share is 1.0%

Ref: FEPD Circular 15, dated September 01, 2024.

EDF Period:

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.
Ref: FEPD circular 45, December 31, 2017.

Eligibility:

For any manufacturer exporters including BGMEA, BKMEA, BTMA, BGAPMEA, BPGMEA, LFMEAB, BCWMA, BDYEA, B and C Type units operating in EPZs.

[Firms with 100 per cent foreign ownership are considered "Type-A".
Joint venture companies with foreign and Bangladeshi ownerships are treated "Type-B“.
And those with 100 per cent Bangladeshi ownerships are treated "Type-C". ]

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’.

Ref: FE Circular No. 06, dated April 19, 2022.