MDB OFFSHORE BANKING

With a view to catering to the banking requirements of non-resident customers, Midland Bank Limited (MDB) established Offshore Banking Unit in Gulshan and Agrabad Branches under Offshore Banking Division in Head Office, Dhaka. OBU acts as a unique solution for Banks around the globe to carry out international banking business which involves foreign currency denominated assets and liabilities taking the advantage of internationally competive pricing for our clients.

MDB Offshore Banking services is specially tailored for 100% foreign owned company, joint venture and locally owned company in Export Processing Zones (EPZ), Export Zones (EZs) and High Tech Park. We offer term finance, working capital finance and trade finance services in different modes. We also provide term finance facility to locally owned industrial units outside EPZ, EZs and High Tech Park.

Our export finance facilities include:

  • Back to Back L/C opening
  • Export Bill Discounting (FDBP and LDBP)

Our import finance facilities include:

  • UPAS L/C Bill Discounting
  • Term Loan (TR)

Our non-funded trade finance facilities:

  • L/C Opening (Sight & Deferred)
  • L/C Advising
  • L/C Transfer
  • Bank Guarantee

Our Deposit Products

Product Name
MDB Offshore Fixed Deposit FAQ - MDB Offshore Fixed Deposit
MDB International Banking Account FAQ - MDB International Banking Account

MDB Offshore Bill Discounting (Import Onshore Bill) under (UPAS L/C)

Midland Bank Limited in its offshore banking operation, may discount/purchase usance/deferred Import bills duly accepted by the ADs against import from abroad on banker customer relationship applying due diligence and arrange payment to overseas suppliers.

Title Details
Name of the Product
  • MDB Offshore Bill Discounting (Import Onshore Bill) under (UPAS L/C)
Purpose of the Product
  • For making import payments (for the items importable under usance basis as mentioned in sub para 33(a), Chaper-7 of Guidelines for Foreign Exchange Transactions, Vol-1
Availability
  • This product will be available at Dhaka and Chattogram through Corporate/SME Banking units for MDB customers. Other banks onshore customers are also eligible to avail this facility from MDB Offshore unit.
Amount
  • Any amount as per sanction advice.
Tenor
  • Depending on cash flow of the customer, the tenor of this facility may vary from 60 days to 360 days and as per sanction advice.
Interest Rate/Discounting Rate/Pricing
  • Mark-up of 4.00 percent over benchmark rate SOFR p.a maximum.
Mode of repayment
  • On or before the maturity date MDB and other banks onshore unit shall arrange cover fund to settle the bill discounted from MDB Offshore unit.
  • MDB offshore/Onshore banking unit shall observe instruction to settle import payments under supplier’s credit(deferred payments)/ buyer’s credit as per sub para 33 (b), 33( c), 33(d),Chaper-7 of Guidelines for Foreign Exchange Transactions, Vol-1 and relevant circulars from FEPD of Bangladesh Bank for time to time.
VAT
  • 15% on fees income ( if any)
AIT & VAT
  • As per NBR Rules

MDB Offshore Deemed Usance/Deferred Export Bill Discounting

Midland Bank in its offshore banking operation, may discount/purchase accepted usance/deferred export bills against deemed exports of products produced in Bangladesh and Type C units of EPZs and EZs

Title Details
Name of the Product
  • MDB Offshore Deemed Usance/Deferred Export Bills Discounting
Purpose of the Product
  • For immediate finance to the deemed exporter against their usance/deferred export bill
Availability
  • This product will be available at Dhaka and Chattogram through Corporate/SME Banking units for MDB customers. Other banks onshore customers are also eligible to avail this facility from MDB Offshore unit.
Amount
  • Any amount as per sanction advice.
Tenor
  • Maximum 120 days
Interest Rate/Discounting Rate/Pricing
  • Mark-up of 4.00 percent over benchmark rate SOFR p.a maximum.
Requirement for Offshore Discounting
  • Only Deferred/Usance onshore export bills(Local) are eligible for discounting as per Bangladesh Bank BRPD Circular No. 09 dated 27-May-2019
  • Payment terms must be in FCY
  • Allowable only CM portion for discount (Back to Back L/C Liability, Packing Credit , Time Loan etc. must be consider for discount amount)
  • Acceptance must be received from L/C issuing bank vide authentic SWIFT message.
VAT
  • 15% on fees income ( if any)
Excise Duty
  • As per NBR Rules

MDB Offshore Direct Usance/Deferred Export Bill Discounting

Midland Bank in its offshore banking operation, may discount/purchase accepted usance/deferred export bills against direct exports of products produced in Bangladesh and Type C units of EPZs and EZs .

Title Details
Name of the Product
  • MDB Offshore Direct Usance/Deferred Export Bills Discounting
Purpose of the Product
  • For immediate finance to the direct exporter against their usance/deferred export bill.
Availability
  • This product will be available at Dhaka and Chattogram through Corporate/SME Banking units for MDB customers. Other banks onshore customers are also eligible to avail this facility from MDB Offshore unit.
Amount
  • Any amount as per sanction advice.
Tenor
  • Maximum 120 days
Interest Rate/Discounting Rate/Pricing
  • Mark-up of 4.00 percent over benchmark rate SOFR p.a maximum.
Requirement for Offshore Discounting
  • Only Deferred/Usance onshore export bills are eligible for discounting as per Bangladesh Bank BRPD Circular No. 09 dated 27-May-2019
  • Payment terms must be in FCY
  • Allowable only CM portion for discount (Back to Back L/C Liability, Packing Credit , Time Loan etc. must be consider for discount amount)
  • Acceptance must be received from L/C issuing bank vide authentic SWIFT message.
VAT
  • 15% on fees income ( if any)
Excise Duty
  • As per NBR Rules

Contact Details

MDB OBO
Zahed Plaza (Level-09)
30, Gulshan Avenue
Gulshan-2, Dhaka
Tel: +88-09666 410999 (Ext. 999-096)
SWIFT: MDBLBDDHOBU