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IFC Seeks $4b Bond to Issue in Local Market

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IFC

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.

 

 

 

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Index Values Experience Rollercoaster Ride Amidst Dull Turnover

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turnover dse index bourse stock indices

Dhaka Stock Exchange DSE, Bourse on the last working day of the week, March 28th, ended with a hike in Indices and drops in Turnover from the previous working session. This information is known from DSE sources.

411 crore 8 lakh taka shares were traded on this day. 127 crore 71 lahks taka less tradings were done in DSE today compared to the previous workday, 27th March, Shares worth Tk 538 crores 79 lakh shares were traded last time, Wednesday.

The benchmark DSEX added 15.64 points or 5,778 The Shariah-based index DSES gained 2.19 points or 1,254, and the blue-chip index DS30 decreased by 0.98 points or 2,011.

Of the issues traded, 221 advanced, 120 declined and 54 remained unchanged.

IPDC Finance Limited ranked top gainer on DSE, the share price increased by Tk 2.30 paisa or 9.79 percent. On this day, the share was last traded at Tk 25.80 paisa.

Mercantile Islami Insurance PLC ranked top loser on the DSE, the share price dropped by Tk 1.30 paisa or 3.90 percent. On this day, the share was last traded at Tk 31.70 paisa.

DSE topped on trade is Central Pharmaceuticals Limited 24 crore 48 lakh takas of company shares have been traded.

A total of 36 companies’ shares were traded in the Block on the Dhaka Stock Exchange, 37lakh 44 thousand 909 shares of the companies were traded. The financial value of which is 20 crore 48 lakh taka.

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Asian Markets Navigate Uncertainty Over Fed Rate Cuts

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Asian Markets

Asian investors proceeded cautiously on Thursday following remarks from a Federal Reserve official suggesting a potential delay or reduction in interest rate cuts. Meanwhile, the yen maintained its gains after briefly reaching a 34-year low the previous day.

As a recent market rally begins to lose steam, traders are reassessing the US monetary policy outlook. Above-forecast inflation and economic data have led some to question whether the central bank can adhere to its projection of three rate cuts this year.

Confidence has been further shaken by recent comments from Fed officials. Atlanta president Raphael Bostic reiterated his stance of expecting only one rate cut this year, warning against hasty actions that could disrupt the market. Governor Lisa Cook also urged caution among decision-makers.

The latest remarks came from Fed governor Christopher Waller, who suggested a reduction in the number of rate cuts or delaying them in response to recent data. Waller noted progress in reducing inflation but expressed concern over slowed or stalled progress in recent months.

His comments preceded the release of the personal consumption expenditures (PCE) index, expected to show a slight increase, on Friday. Despite concerns, all three main indexes on Wall Street saw gains, with the S&P 500 reaching another record high.

In Asia, markets were mixed, with Hong Kong, Shanghai, Sydney, and Wellington posting gains while Singapore, Seoul, Taipei, and Jakarta declined. Tokyo saw a decline of over one percent as the yen stabilized after hitting its weakest level since 1990 against the dollar.

A Bank of Japan official’s comments warning of continued accommodative monetary policy contributed to the yen’s slide. Speculation has arisen regarding potential intervention to support the currency, with Vice Finance Minister Masato Kanda expressing readiness to take necessary measures.

Market analysts anticipate heightened anticipation for Bank of Japan intervention, particularly in light of recent yen fluctuations. Concerns persist over potential market disruptions in the absence of intervention before the weekend.

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Asian Tiger Growth Fund releases Q2 Financials

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Asian Tiger Growth Fund

One of the listed funds, Asian Tiger Sandhani Life Growth Fund discloses its financial reports for the second quarter, (October– December 23).

The company’s earnings per unit (EPU) loss Tk 0.01 paisa in Q2 of the current financial year (October – December 23). EPU was loss Tk 0.17 paisa during the same period last year. NAV per unit at market price was Tk. 10.20 as on December 31, 2023 and cost price was Tk. 11.07 as on December 31, 2023.

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