Economy
UNDP, BSEC Sign MoU to Boost SDG Bonds in Bangladesh
The United Nations Development Programme (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) have solidified their partnership by signing a Memorandum of Understanding (MoU) aimed at enhancing cooperation and fostering the ecosystem for issuing thematic bonds to achieve the Sustainable Development Goals (SDGs) in Bangladesh. The signing ceremony, held at the BSEC office in Dhaka on Monday, saw BSEC Chairman Shibli Rubayat-Ul-Islam and UNDP Bangladesh Resident Representative Stefan Liller affix their signatures to the agreement.
Under the MoU, UNDP Bangladesh will play a pivotal role in designing an impact measurement and reporting framework based on UNDP’s SDG Impact Standards. Moreover, they will provide assistance in developing bond allocation strategies and impact reporting mechanisms. Leveraging its expertise, UNDP is well-positioned to offer technical support and long-term capacity-building to establish a robust ecosystem for managing SDG thematic bonds, encompassing the entire process from pre-issuance to post-issuance. Additionally, UNDP will engage stakeholders to promote the adoption of thematic bonds among issuers and investors.
Stefan Liller, speaking at the signing ceremony, highlighted the importance of the thematic bond framework and the accompanying technical support. He stressed that these initiatives will create a conducive environment for mobilizing capital in Bangladesh to achieve the SDGs. UNDP is committed to collaborating with regulators, providing catalytic support, and fostering an ecosystem for SDG financing in Bangladesh, while simultaneously expanding opportunities for the private sector to advance their sustainability initiatives.
Expressing enthusiasm about the partnership, BSEC Chairman Shibli Rubayat-Ul-Islam affirmed that this initiative aligns with the various ongoing endeavors of the Government of Bangladesh. He emphasized BSEC’s successful pursuit of establishing a vibrant bond market and the inclusion of a separate section for green bonds in their Guideline for fixed-income securities. Rubayat-Ul-Islam opined that promoting sophisticated green financial products like thematic bonds or sukuks will ultimately fortify the overall bond market and facilitate efficient capital mobilization for achieving the SDG goals. He stressed the urgency of greening the economy and advocated for the early adoption of thematic products, pledging BSEC’s readiness to support in designing and piloting the framework.
The collaboration between UNDP and BSEC represents a significant stride towards directing investments into sustainable development in Bangladesh. By capitalizing on UNDP’s expertise and leveraging BSEC’s regulatory framework, the partnership aims to unlock financing opportunities for SDGs while fostering sustainable practices within the private sector. This joint effort aspires to mobilize fresh capital and promote environmentally friendly financial instruments, thereby contributing to the nation’s sustainable development agenda and climate-related commitments.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
