Bangladesh plans international bonds to broaden its financing
Bangladesh’s finance minister outlined plans for dollar bonds in New York and other international bond instruments at World Investor Week in Dhaka. Amir Khosru Mahmud Chowdhury wants market financing to play a larger role alongside reforms to exchanges and intermediaries. He argued that conventional foreign lending cannot meet the country’s investment needs; the bond initiatives remain plans rather than completed fundraising.
Economics & Markets··Night
The minister sets out a move towards bond markets
Bangladesh’s Finance and Planning Minister Amir Khosru Mahmud Chowdhury outlined plans to raise money through international bonds at the opening of World Investor Week in Dhaka on 4 October. He said the government wanted dollar bonds in New York and would also use Panda and Samurai bonds. Both public and private financing feature in the shift he described towards market-based sources of long-term capital.[1], [2]
Chowdhury also described work on a dedicated Bangladesh fund in Hong Kong. He said the economy had relied heavily on bank loans, creating complications when short-term deposits financed long-term needs. Bond markets, equity markets, derivatives and securitization were among the alternatives he named. Securitization packages financial assets into securities that can be sold to investors. These initiatives were presented as plans and work in progress, without a completed bond sale.[2]
An annual investment need of 50 billion dollars is asserted
The minister put the investment needed for a trillion-dollar economy at approximately 50 billion dollars each year. He argued that conventional foreign loans could not provide enough, with the Hong Kong and New York initiatives forming part of the financing changes. In discussing Biman Bangladesh’s aircraft-purchase plans, he said the airline should borrow from the market rather than expect the government to supply the money. The proposed shift therefore extends to how enterprises obtain financing.[1], [2]
Exchanges and intermediaries are asked to rebuild trust
Chowdhury criticised the performance of stock exchanges and intermediaries and said past policy support had been fragmented. He called for better governance and institutions able to regulate their own conduct. Brokers, exchanges, depositories, credit-rating agencies and the Financial Reporting Council were among the bodies he urged to improve professional standards and transparency, without waiting for instructions from the securities regulator.[2], [1]
He said regulators now meet monthly after previously working separately. Insurance Development and Regulatory Authority chair Mir Nadia Nivin added that wider life-insurance coverage could supply long-term institutional capital for bonds, equities and infrastructure. The Bangladesh Securities and Exchange Commission organised World Investor Week, which continues until 12 October, and its chairman Masud Khan described efforts to restore investor confidence.[1]
