Bangladesh has signed a 14 billion taka (about 180 million U.S. dollars) loan agreement with the Hongkong and Shanghai Banking Corporation (HSBC) to finance the country's first-ever satellite "Bangabandhu-I".

Shahjahan Mahmood, chairman of Bangladesh Telecommunication Regulatory Commission (BTRC), and M Mahbub Ur Rahman, deputy chief of HSBC Bangladesh, signed the agreement on behalf of their respective sides on Friday in capital Dhaka.

BTRC Chairman Mahmood said the loan, which is to be repaid in 20 installments, has a duration of 12 years with an annual interest rate of 1.51 percent.

Bangladesh in November last year signed a 19.51 billion taka (about 248 million U.S. dollars) deal with French firm Thales Alenia Space for the satellite project.

Speaking at the contract signing ceremony on Friday, Bangladesh State Minister for Post and Telecommunications Tarana Halim said the loan agreement is another step towards fulfillment of the country's long-cherished dream of launching the first satellite.

"With the launch of the satellite we will become the 54th member of the exclusive club of satellite-owning countries on Dec. 17, 2017."

The Bangladeshi government had previously purchased a 119.1 east longitude orbital slot from Russia-based Intersputnik for 15 years.

Source: Xinhua News Agency