Yes. A foreign lender can take security over a ship registered in Bangladesh, and the mortgage should be registered with the registrar of Bangladeshi ships so that its priority is recorded. In practice the lender will also want a deed of covenant, an assignment of insurances and earnings, and guarantees from the owner's group. Because the loan is likely to be in foreign currency, the borrower's foreign exchange approvals and reporting must be in order, and enforcement would normally run through the Admiralty Court. We review the registry position and approvals before the loan is signed and drawn.

Usually some approval or reporting is needed when a Bangladeshi resident borrows or leases from abroad in foreign currency. The route depends on the borrower's status, the tenor, the pricing and whether the borrower is an industrial enterprise, an exporter or another type of entity. Since August 2026, the foreign loan scrutiny previously associated with BIDA sits with Invest Bangladesh, while Bangladesh Bank remains responsible for the foreign exchange regime. We identify the route at term sheet stage, because approval timing often drives a shipping finance closing timetable more than the documents do. Delays usually come from missing papers.

Interest paid by a Bangladeshi borrower to a non-resident lender is subject to withholding tax at source. Under the Finance Act 2026, the rate on interest paid to non-residents fell from 20% to 10%, which affects pricing and the cost of gross-up clauses in shipping finance documents. A double tax treaty between Bangladesh and the lender's country may reduce the rate further if its conditions are met and the paperwork supports treaty access. Fees and lease rentals may be treated differently from interest, so we review each payment stream with tax advisers before the margin is fixed.

It depends on the commercial terms and the purpose for which the question is asked. A bareboat charter with a purchase obligation at the end may be treated for accounting and tax purposes much like a financing, while a pure operating charter with return of the vessel is closer to a rental. The characterisation matters for withholding tax, foreign exchange approvals, the lessor's rights on the lessee's insolvency and whether a local licence is needed. We review the draft charter against each of these tests so the parties know in advance how it is likely to be viewed in Bangladesh.

If a third party arrests the vessel in Bangladesh, the Admiralty Court will decide the claims against it and, if the vessel is sold, the order in which creditors are paid. A registered mortgage generally ranks behind certain maritime liens, such as crew wages and salvage, but ahead of many unsecured claims. A mortgagee should therefore act quickly to file its own claim and protect its position. We advise lenders on intervention, release security and the evidence the court will expect, working closely with our admiralty litigation team throughout the proceedings and any sale.

Leasing companies licensed under the financial institutions framework supervised by Bangladesh Bank can finance assets, including vessels, within their licence terms and the prudential limits that apply to them. In practice, large ocean-going vessels are often financed by banks or offshore lessors because of single-borrower limits and the need for foreign currency. Smaller coastal vessels, lighters and river craft are more commonly financed locally. We check the lender's licence, internal approvals and exposure limits as part of due diligence, so that the transaction cannot later be challenged on capacity grounds. Local syndicates can sometimes share larger exposures.

A lender or lessor should verify the owner's title and corporate authority, search the ship register for existing mortgages, confirm classification and insurance, review charters and management agreements, and check for sanctions exposure in the vessel's ownership, trading history and counterparties. Local corporate records, tax status and litigation searches are also relevant, together with any pending Admiralty Court claims. We prepare a focused diligence report that ties each finding to a condition precedent, covenant or price adjustment, so the documents deal with the risk rather than merely recording it. Findings are shared early with the credit team.

Timing depends mostly on approvals, the condition of the vessel's records and how many jurisdictions are involved. A straightforward local bank loan for a Bangladesh flag vessel with clean title can move quickly once credit approval is given. A cross-border shipping finance loan or lease needing foreign exchange approval, registration in two registries and coordination with foreign counsel takes longer. We give an indicative timetable after an initial review of the term sheet, the vessel's papers and the parties' approvals, and update it as the work progresses, rather than offering fixed periods in advance.