Page 27

of Investment shall be made annually with the approval of the EC of the Board / Board of Directors. 2. Diversification of Investment Portfolio will be encouraged so as to reduce the risk of dependence on a particular sector for balanced socio-economic development of the country. 3. Branches shall submit a report outlining trend and outstanding to the Head of Investment Administration Division on quarterly basis for onward submission to the Executive Committee of the Board of Directors / Board of Directors for information/ perusal/ guidance. Discouraged business types (areas of business) 1. 2. 3. 4. 5.

Military Equipment / Weapons Investment, Companies listed on CIB black list or known defaulters, Highly Leveraged Transactions, Investment of Speculative Investments, Tobacco Sector / Logging, Mineral Extraction / Mining or other activity that is Ethically or Environmentally Sensitive, 6. Counter parties in countries subject to UN sanctions, 7. Bridge Investment [Equity/Debt issuance as a source of repayment], 8. Investment to Holding Companies. Investment Facility Parameters The Bank in general will approve / renew trade Investment facility for the period of 01 (one) year from the date of approval / last expiry date. a. The Bank will extend medium term Investment for 3 (three) years period. b. The Bank will extend long term Investment for maximum period of 7 (seven) year including grace period of 6 (six) months to 18 (eighteen) months (depending on the nature of Project) for project Investment but in case of need, in syndication or club Investment, the Bank may extend the period of Investment up to 8 (eight) years or as per consensus of the syndicated members. c. However, in case of House Building Investment (General), the repayment period will be a maximum of 20 (Twenty) years. d. House Building Investment to Bank’s employee shall be governed as per policy guidelines of “Employees House Building Investment” scheme. e. Besides above, the Bank will extend Investment facilities under special program like Consumer Investment Scheme, Small Investment Scheme, SME Investment, Doctor’s Investment Scheme, Women Entrepreneurship Development Project, Personal Investment, Car Investment, House Building Investment (General) / Mortgage Investment to be set by the Bank under the policy guidelines of the specific scheme. f. The rate of Profit / Commission / Charges / Fees etc. would be as per the approved schedule of charges with variation permissible as per Bangladesh Bank guidelines and with the approval of competent authority. g. The Profit rate to be charged and to be paid out on yearly basis except the especial schemes and unless otherwise specified in the approved terms. h. Repayment of term Investment would be fixed on monthly/quarterly basis. i. In general, the cash margin for L/C would be 10% of the L/C amount or on the basis of Banker – Customer relationship subject to the minimum requirement of Bangladesh Bank whichever is higher.

first islami security bank