S Alam power plant cleared to use Rupali Bank’s remaining foreign-currency loan

SS Power-1, a power plant owned by S Alam Group, is set to receive a foreign-currency loan from state-owned Rupali Bank.

Bangladesh Bank has approved the company’s use of $3.2 million remaining from an earlier syndicated loan facility.

In a circular on Wednesday, the central bank exempted the defaulting company from a requirement under a provision of the Bank Company Act.

On Aug 16, Bangladesh Bank similarly granted a legal waiver allowing SS Power-1 to open letters of credit with a 100 percent cash margin.

S Alam Group came under investigation over alleged loan irregularities after the Awami League government fell amid the 2024 mass movement. 

Several government agencies launched probes into the Chattogram-based conglomerate, while multiple cases were filed against it.

Unable to secure fresh loans, most of the group’s businesses subsequently faced financial strain.

Its power and transport operations remain active, while its consumer-goods business is struggling.

SS Power-1 also became a loan defaulter amid the financial crisis.