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 Exchange DSE, Bourses on the first working day of the week, April 2, ended with price index hikes & turnover drops.
This information is known from DSE sources.
666 crores 83 lakh shares were traded in DSE on this day. 531 crores 83 lakhs more trading was done in DSE today compared to the previous workday, 30 March, Shares worth Tk 666 crores 83 lakh shares were traded in DSE last time, Thursday.
Of the issues traded, 83 advanced, 46 declined, and 195 remained unchanged.
On the other hand, Miracle Industries Ltd ranked top loser on the DSE, the share price dropped by Tk 1.5 paisa or 5.38 percent. On this day, the share was last traded at Tk 26.40 paisa.
DSE topped on trade Genex Infosys Limtied 36 crores 98 lakh 2 thousand takas of shares of the company have been traded.
A total of 53 companies’ shares were traded in the Block on Dhaka Stock Exchange, 61 lakh 34 thousand 273 shares of the companies were traded. The financial value of which is 30 crore 30 lakh taka.
One of the listed companies, Standard Ceramic Industries Limited, discloses its financial reports for the second quarter, (October-December 22). This source is known from DSE.
The company’s earnings per share (EPS) was loss Tk 1.33 paisa in Q2 of the current financial year. EPS was loss Tk 4.33 paisa during the same period last year. As of December 31, 2022, net asset value (NAVPS) was Tk 2.33 paisa.
The company reported EPS has been decreased due to reduction in sales and gross profit.
/NR
South Asian Bourse or Stock Markets saw growth last week. Among them, the hike was in the stock markets of India and Pakistan.
A review of South Asian markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has hiked 1,464 points during the week. At the end of the week, the index stood at 58,991 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange rose by 414 points last week. At the end of the week, the index stood at 17,359 points.
Pakistan Stock Exchange Index ‘KSE 100’ earned 58 points last week. After a week of gaining, the index settled at 40,000 points.
On the hand The Sri Lankan stock market hiked, the Colombo Stock Exchange index ‘ASPI’ lost 118 points in a week. After a week the index settled at 9,301 points.
Bhutan’s stock market index ‘BSI’ hiked by 68 point and the index stood at 1,195 points throughout the whole week. Nepal’s ‘NEPSE’ lost 7 points last week, as the index stands at 1,908 points.
