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 last working day of the week, 25th July, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
497 crore 34 lakh taka shares were traded on this day. 337 crore 97 lakh more tradings were done in DSE today compared to the previous workday, July 24th, Shares worth Tk 159 crores 37 lakh shares were traded last time, Wednesday.
The benchmark DSEX increased 62.81 points or 5,413 The Shariah-based index DSES added 13.81 points or 1,183 and the blue-chip index DS30 gained by 24.25 points or 1,932.
Of the issues traded, 286 advanced, 66 declined and 40 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 3.80 paisa or 9.87 percent. On this day, the share was last traded at Tk 42.30 paisa.
Rangpur Foundry Limited ranked top loser on the DSE, the share price dropped by Tk 5.40 paisa or 2.98 percent. On this day, the share was last traded at Tk 175.70 paisa.
DSE topped on trade is Square Pharmaceuticals PLC 35 crore 9 lakh takas of company shares have been traded.
A total of 28 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 82 lakh 94 thousand 29 shares of the companies were traded. The financial value of which is 21 crore 92 lakh taka
One of the listed companies, Eastland Insurance Company Limited discloses its financial reports for the second quarter, (April – June 24).
The company’s earnings per share (EPS) Tk 0.27 paisa in Q2 of the current financial year (April – June 24). EPS was Tk. 0.41 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. NAV per share was Tk. 20.85 as of June 30, 2024.
One of the listed companies, Shahjalal Islami Bank PLC discloses its financial reports for the second quarter, (April – June 24).
The company’s Consolidated earnings per share (EPS) Tk 1.50 paisa in Q2 of the current financial year (April – June 24). Consolidated EPS was Tk. 1.50 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. Consolidated NAV per share was Tk. 20.85 as of June 30, 2024.
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