To improve the environmental condition and to fulfill the Government of Bangladesh’s plans to transform and modernize the brick sector, IDCOL provides long term concessionary financing to encourage potential sponsors to set up environment friendly brick kilns. Around BDT 1300 million has already been approved for 6 tunnel kiln and 1 HHK brick projects, with aggregate daily production capacity of 11,40,000 bricks.

Commercial terms and features for financing in Auto Brick Sector:

Sl.	Particulars	Detail
1	Portion of the fund	Debt: 70% and Equity: 30% IDCOL Debt amount will not exceed BDT 300 Million
2	Rate of interest	9% p.a. with semi-annual review
3	Tenor of loan	Maximum 9 years period including construction period of 1.5 years
4	Technology	Tunnel kiln technology with minimum production capacity of 100,000 bricks/day
5	Major agreement	Agreement with EPC Contractor and other related infrastructure development agents
6	Required land area	Minimum 8 acres of land for a project having capacity of 100,000 bricks per day
7	Eligible criteria:	Variable Refrigerant flow and high COP air conditioners
	i. Land	In the name of the project company
	ii. Security	100% of loan amount (Negotiable)
	iii. Permissions	Site Clearance Certificate (SCC) along with other permissions like NOC from local authority, brick burning license, electricity permission etc.
	iv. Security & Mortgage	• Mortgage of project Land • Other collateral • Mortgage of House/flat/other land • Bank Guarantee • FDR