Leveraged & Acquisition Finance in Bangladesh
Leveraged and acquisition finance advice for buyers, private equity sponsors, banks and international lenders funding acquisitions of Bangladeshi companies: structuring holdco and local debt, obtaining approvals, taking share pledges and asset security, and coordinating funding with the share purchase timetable.
- Map structure and approvals
- Negotiate terms and diligence
- Document and obtain consents
- Close and monitor
Acquisition finance for Bangladesh transactions
Acquisition finance for a Bangladeshi target rarely looks like a standard leveraged buyout in London or Singapore. Local banks face regulatory limits on lending for share purchases, foreign loans need approval and reporting, security must be perfected under Bangladesh law, and the target's cash flows may be hard to use for holding company debt service. We advise strategic buyers, sponsors, development finance institutions, local banks and international lenders on structuring and documenting acquisition debt as part of our corporate and finance practice in Bangladesh. Approvals should be identified at the outset.
Structure comes first. Many cross-border deals place the acquisition debt offshore, at a holding company in Singapore, Mauritius, the UAE or elsewhere, with the Bangladeshi company acquired through that vehicle. Others use a Bangladeshi acquisition company funded by a mix of equity, shareholder loans and local bank debt, sometimes followed by a merger with the target under the Companies Act 1994. Each route has consequences for approvals, tax deductibility of interest, withholding on payments abroad, security and enforcement. We compare the options with the sponsor's tax and offshore counsel before the term sheet is agreed. Getting this right early matters.
Regulation shapes what lenders can do. Bangladesh Bank rules restrict how banks lend against or for the purchase of shares and count such exposures against capital market limits, and single borrower and large exposure limits also apply. Foreign currency borrowing by Bangladeshi companies requires approval or registration through Bangladesh Bank and, for some investment-linked borrowing, Invest Bangladesh, which took over the functions of BIDA, BEZA and the PPP Authority on 23 August 2026. The Finance Act 2026 reduced withholding on interest paid to non-residents to 10%, which affects pricing and gross-up clauses in cross-border acquisition finance.
Lenders typically take pledges over shares in the Bangladeshi company, with share certificates, undated transfer forms and powers of attorney, or depository pledges for listed shares. Once the acquisition closes, the target may grant mortgages over land, hypothecation of machinery and receivables, assignment of key contracts and charges registered with the Registrar of Joint Stock Companies. Restrictions on a company giving financial assistance for the purchase of its own shares, related party rules and existing lender consents must be checked before the target joins the security package. Each document must also be checked for stamping and registration.
Barrister Tahmidur Rahman leads our finance work, with Barrister Remura Meheruba Mahbub advising on banking, corporate and foreign investment issues. We act for borrowers and lenders and work with counsel in the UK, US, UAE, China, India and Singapore on English law facilities, offshore security and intercreditor arrangements. For listed targets, the BSEC takeover rules and disclosure requirements are coordinated with the funding plan. If you are financing or refinancing an acquisition in Bangladesh, you can contact our Dhaka office to discuss structure, approvals and timing. Please bring the term sheet and any draft share purchase agreement.
Core workstreams
Four clear stages
- 01Map structure and approvals
- 02Negotiate terms and diligence
- 03Document and obtain consents
- 04Close and monitor
Talk to a partner
Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.
Book →What we handle in leveraged and acquisition finance
Debt structuring and term sheets
- Map structure and approvals
- Negotiate terms and diligence
- Document and obtain consents
- Close and monitor
Facility and intercreditor documents
- Map structure and approvals
- Negotiate terms and diligence
- Document and obtain consents
- Close and monitor
Regulatory approvals and reporting
- Map structure and approvals
- Negotiate terms and diligence
- Document and obtain consents
- Close and monitor
Share pledges and asset security
- Map structure and approvals
- Negotiate terms and diligence
- Document and obtain consents
- Close and monitor
Listed company acquisitions
- Map structure and approvals
- Negotiate terms and diligence
- Document and obtain consents
- Close and monitor
Refinancing, restructuring and enforcement
- Map structure and approvals
- Negotiate terms and diligence
- Document and obtain consents
- Close and monitor
Debt structuring and term sheets
We advise on where acquisition debt should sit, how equity, shareholder loans, mezzanine and senior debt should be combined, and how debt service will be funded from the target's dividends, intercompany loans or post-closing merger. We prepare or review term sheets and commitment letters with Bangladesh-specific conditions, so that approvals, certain funds requirements and security deliverables reflect what can realistically be achieved before completion. Early agreement on these points prevents expensive renegotiation later in the acquisition finance process.
Facility and intercreditor documents
We draft and negotiate senior, mezzanine and bridge facility agreements, local currency loan agreements, shareholder loan agreements and intercreditor or subordination agreements. Where English law facilities are used offshore, we review them for Bangladesh-law interfaces, including representations, undertakings, approvals, tax gross-up, illegality and enforcement provisions, and we give Bangladesh-law capacity and enforceability opinions to lenders where required. Our aim is a document set that local registries, courts and regulators will accept without difficulty. We keep definitions, conditions precedent and security provisions consistent across the acquisition finance facility, security and intercreditor documents.
Regulatory approvals and reporting
We map and obtain approvals for foreign borrowing, share acquisitions by non-residents, valuation of shares, remittance of acquisition proceeds and repatriation of debt service. That includes Bangladesh Bank applications and reporting, Invest Bangladesh registration where relevant, sector regulator change of control consents and competition analysis under the Competition Act 2012, so that funding and closing are not delayed by an overlooked consent. We keep a single approvals tracker shared with the buyer, lenders and the seller's advisers.
Share pledges and asset security
We prepare share pledges, depository pledges for listed shares, mortgages, hypothecation deeds, assignments of receivables, insurances and contracts, and guarantees, and we complete stamping, registration and RJSC charge filings. We assess financial assistance, corporate benefit, related party and existing lender restrictions before target companies grant upstream security, and we structure security trustee or agent arrangements for syndicates of local and foreign lenders. Each element of the acquisition finance security package is tested for enforceability before closing.
Listed company acquisitions
For acquisitions of listed Bangladeshi companies, we coordinate acquisition finance with the BSEC rules on substantial acquisition of shares and takeovers, public disclosure, price sensitive information and timing of offers. We advise on how funding conditions, lender security over listed shares and margin or price protection provisions interact with the takeover process and with the depository and exchange requirements. Disclosure obligations are tracked carefully so that negotiations do not breach market rules. We also advise on offer documents and funding confirmations.
Refinancing, restructuring and enforcement
After an acquisition, we advise on refinancing bridge debt, dividend recapitalisations, debt pushdown, covenant amendments and waivers. Where performance falls short, we advise lenders and borrowers on restructuring, standstills, enforcement of share pledges and asset security, Artha Rin Adalat proceedings and insolvency risk, and on how foreign exchange rules affect transfers of enforced shares to lenders or new buyers. Early engagement between lenders and sponsors usually preserves more value for everyone. Practical options are assessed before formal steps.
Partner-led, on every matter.
Corporate & Finance matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.
Meet the firm →01Can Bangladeshi banks provide acquisition finance for buying shares?
Bangladeshi banks can participate in some acquisition financing, but Bangladesh Bank rules restrict lending for the purchase of shares and lending secured by shares, and count such exposures towards capital market limits. Single borrower and large exposure limits, as well as related party rules, also apply. As a result, local bank acquisition finance is often limited or structured around asset-based or working capital facilities to the target after closing. We review the proposed facility against current Bangladesh Bank requirements and help lenders and borrowers find structures that comply while still meeting the funding need.
02Is it better to borrow offshore or in Bangladesh?
It depends on the buyer, the target, currency needs and tax. Offshore borrowing at a holding company level avoids some Bangladesh approval requirements and can give lenders security under a familiar legal system, but debt service then depends on dividends or other payments out of Bangladesh, which require tax and exchange control compliance. Local borrowing in taka avoids currency mismatch but is subject to local bank limits. Some deals combine an offshore holding facility with local working capital lines. We model the regulatory and tax consequences of each option so the buyer can choose the structure that fits.
03Can the target company guarantee the buyer's acquisition debt?
Target guarantees and security, often called upstream support, need careful analysis in Bangladesh. Company law restrictions on financial assistance for acquiring a company's own shares, directors' duties, corporate benefit, related party approvals and the target's existing loan covenants can all limit what the target may provide, particularly before completion. Some support may be possible after closing. We assess what the target can lawfully give, when and with which approvals, and draft guarantee limitation language that protects directors while giving lenders meaningful credit support. Support given too early or without approvals may be challenged, so we sequence it around completion.
04What approvals are needed for a foreign loan to fund an acquisition?
A Bangladeshi borrower taking foreign currency debt generally needs approval or registration through Bangladesh Bank, depending on the type of borrower, amount, tenor and pricing, and some investment-linked borrowing may involve Invest Bangladesh. Approval conditions can cover interest rates, fees, repayment profile and use of proceeds. Separately, the acquisition itself may require approvals for share transfers to non-residents, valuation and sector-specific consents. We map these approvals together, because a delay in one can hold up the other. Applications should be lodged once terms are agreed, to avoid delaying drawdown.
05How are share pledges over Bangladeshi companies enforced?
For private companies, lenders usually hold share certificates, signed undated transfer forms and powers of attorney, allowing them to transfer pledged shares to themselves or a buyer on default, subject to the articles and any pre-emption rights. Registration of the transfer by the company and, where a non-resident acquires shares, Bangladesh Bank requirements must be satisfied. Listed shares are pledged through the central depository and enforced under its procedures. Court involvement may be needed if the borrower resists. We draft pledges and articles with enforcement in mind from the start of the acquisition finance process.
06Is interest on acquisition debt tax-deductible in Bangladesh?
Deductibility of interest depends on who the borrower is, how the borrowed funds are used and the current Income Tax Act rules on allowable expenses, thin capitalisation and related party payments. Interest paid by a holding company that only holds shares may not be deductible against the target's operating profits unless the structure allows consolidation or a post-closing merger. Withholding tax applies to interest paid to non-residents, now generally 10% under the Finance Act 2026, subject to treaty relief. We work with tax advisers so that the acquisition finance structure reflects realistic after-tax costs.
07How does acquisition finance work for a listed Bangladeshi company?
Acquiring a significant stake in a listed company triggers BSEC rules on substantial acquisition of shares and takeovers, which may require disclosure and, above certain thresholds, an open offer to other shareholders. The acquirer needs funding in place for the full offer obligation, and the timetable is driven by regulatory steps. Lenders often take security over acquired listed shares through the depository, with price-based protections. We coordinate the financing with the takeover process so that funding, disclosure and offer timing are aligned. Offer price and funding certainty should be settled before any announcement.
08What happens if the acquired business underperforms?
Acquisition finance documents usually include financial covenants, information undertakings and events of default that allow lenders to act early. Options range from waivers and covenant resets to injections of new equity, rescheduling, refinancing, sale of the business and, in serious cases, enforcement of security. In Bangladesh, enforcement through the courts can take time, and foreign exchange rules affect transfers of shares to foreign lenders, so negotiated restructuring often preserves more value. We advise lenders and sponsors on realistic options. Lenders should review their rights and notice requirements before the first covenant breach.
From first call to resolution.
- 01
Map structure and approvals
We review the acquisition structure, funding sources, target and lender profile, then identify the regulatory approvals, tax consequences and security options that will shape the acquisition finance term sheet and the overall timetable. Scope and fees are agreed upfront.
- 02
Negotiate terms and diligence
We negotiate term sheets and commitment letters, carry out legal due diligence on the target's existing debt, security, licences and restrictions, and identify consents and releases required before new acquisition debt can be secured. Findings are reported in plain terms.
- 03
Document and obtain consents
We draft facility, intercreditor and security documents, prepare Bangladesh Bank and other applications, deliver legal opinions and coordinate conditions precedent so that funds are available on the date the share purchase completes. A closing checklist tracks each deliverable.
- 04
Close and monitor
We manage closing and perfection of security, including stamping, registration and RJSC filings, and then advise on reporting, covenant compliance, refinancing, amendments, restructuring and enforcement throughout the life of the debt. We send regular reminders of acquisition finance compliance certificates, reporting dates and approaching deadlines.
“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”
The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback
Related reading.

How to Acquire a Company in Bangladesh: The Step-by-Step Acquisition Process in 2026

Cross-Border Acquisition in Bangladesh 2026: Foreign Buyers, Approvals and Outbound Deals
Foreign Loans for Bangladesh Businesses: Who Approves What After the September 2026 Changes?

Substantial Acquisition of Shares in Bangladesh 2026: Takeovers of Listed Companies under the BSEC Rules 2018
All insights →
What is leveraged acquisition finance?
Do lenders need a local security agent?
Can acquisition finance be refinanced after closing?
Is competition approval needed for an acquisition in Bangladesh?
How long does it take to put acquisition finance in place?
Can a private equity fund use acquisition finance in Bangladesh?
What legal opinions do lenders usually require?
How can TRW help with acquisition finance?
Funding an acquisition in Bangladesh? Let us talk.
Speak with the partners about acquisition finance in Bangladesh or across borders.
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