Stocks
IFC Seeks $4b Bond to Issue in Local Market
International Finance Corporation (IFC) seeks to issue taka-denominated bonds worth $4 billion, among local investors to lend the proceeds to projects in Bangladesh.
IFC has already issued local currency bonds among domestic investors in the Philippines and India, where the funds were lent to priority sectors.
Prior, the IFC successfully issued a three-year Tk 80 crore taka-denominated bond, coined “Bangla Bond”, at London Stock Exchange.
Its iconic bell ringing ceremony was held in November 2019 and the proceeds were used to support food safety with an agribusiness client in Bangladesh.
The Bourses analysts welcome the move, saying it would inspire local stock investors to make new investments in the bond market.
The World Bank Group member sent a letter to the Ministry of Finance last year requesting approvals required under its “Articles of Agreement”.
In response, the ministry sent a dsiclosure to the Bangladesh Securities and Exchange Commission (BSEC) asking whether the stock market regulator has any objection.
The BSEC replied it had none. “Hence, the IFC will have to apply and take approval to issue bonds from the BSEC following the securities rules and regulations,” it added.
The IFC is keen to expand its financing in taka for clients in Bangladesh who do not generate USD as a part of their daily operations, the IFC said in its letter.
The bonds will help support the growing financing needs of various priority sectors, including agriculture, manufacturing, those related to climate change, microfinance and lenders focusing on small and medium enterprises and women-owned enterprises.
It will also support the government’s efforts to develop and grow the domestic capital market in Bangladesh.
BSEC Chairman Prof Shibli Rubayat-Ul-Islam agreed that the bond would give new impetus to the development of the country’s bond market.
The BSEC is trying to make the bond market vibrant as the market can give a good source of funds to entrepreneurs, he said.
It has already made treasury bills and bonds tradable on the stock exchanges with the help of Bangladesh Bank and the National Board of Revenue.
There are about 270 treasury bonds worth more than Tk 2.5 lakh crore and with tenures ranging from two years to 20 years, showed data from Bangladesh Bank.
Of them, 222 were listed on Dhaka Stock Exchange (DSE) as of August, with a combined value of Tk 59,359 crore.
But they were not traded like shares and mutual fund units, which require availing a beneficiary owner’s account first.
Rather they could be bought and sold straight over the counter, much like savings certificates.
“The IFC wants to issue bonds worth $4 billion and the IFC is not alone. Asian Development Bank (ADB) also wants to issue bonds in the Bangladesh stock market. It would be better for our stock market,” added Islam.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
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