State owned Rupali Bank, listed on the stock market, has repaid USD 283 million of foreign loans for SS Power Ltd in two installments without prior approval from the central bank. For this reason, Bangladesh Bank has sent a letter to the bank asking for an explanation.
According to the central bank, repaying this loan without approval constitutes a violation of the terms of the loan agreement. The power plant located in Gandamara, Banshkhali, on the Bay of Bengal coast is jointly owned by S. Alam Group and China’s Sepco III. The chairman and managing director of the plant is Mohammad Saiful Alam Masud of S. Alam Group.
Bangladesh Bank’s letter states that Rupali Bank sent the repayment amount to the Singapore branch of the Bank of China without its authorization. Of this, the third installment of USD 140 million was paid on 19 December 2024, and the fourth installment of USD 143 million was paid on 23 June 2025. According to Bangladesh Bank, a total loan of USD 1,697 million was taken from the Bank of China for the construction of the plant and its operation until 2035, of which USD 575 million (including interest) has been repaid so far.
In a written statement, Rupali Bank’s communications department said that installments of loans approved by the Bangladesh Investment Development Authority (BIDA) may be repaid without prior approval from Bangladesh Bank.
The bank argued that since Rupali Bank does not have offshore banking facilities and cannot conduct daily transactions in dual currencies, it could not debit the FC account directly for the third and fourth installments. Therefore, to ensure timely loan repayment, the funds were deposited directly into the DSAA (Debt Service Accrual Account).
According to Rupali Bank’s explanation, the account agreement specified two special accounts DSRA (Debt Service Reserve Account) and DSAA. Funds in the DSAA can only be used for loan repayment, and on the due date the lenders automatically deduct the installment amount from this account.
However, for the first and second installments (a total of USD 243.76 million), proper approval was obtained from the central bank. Approval for the first installment was required to cover a shortfall in the DSRA, as BPDB had not paid SS Power’s electricity bills on time. Approval was also mandatory for the second installment because it was paid through Islami Bank.
A senior official of Bangladesh Bank said that Rupali Bank must apply again, step by step, to repay the remaining installments, and approval will be given once applications are submitted. In other words, the bank must obtain approval before paying the fifth installment.
A senior official of Rupali Bank stated that the repayment issue involved technical problems and was not intentional. The authorities are reviewing the matter seriously, and approval from Bangladesh Bank will be sought before sending the remaining installment amounts. It is also noted that all funds repaid so far have been provided by SS Power.
