Page 30 - ICE BUSINESS TIMES December 2019

Next Big Thing

Bond,

Bangla projected to grow at 7.2 per over the past three decades, A Game the applicable dollar-taka An Instant

Hit!
exchange rate, with the
cent this fiscal year and 7.3
in recent years, the share of
Changer
investors taking on the
An initiative of the
private investment in GDP
per cent, the year following.
exchange rate risk. On coupon
Bond! Most importantly, has remained static. The Bangla Bond debuted as a payment dates and upon International Finance Looking
Corporation, Bangla Bond has
taka- denominated debt
Private investment-GDP
Bangladesh has met United
brought onboard a new set of Ahead
maturity after three years, IFC
instrument, on the London
ratio has remained stuck at
Nations criteria to graduate
will take the taka earnings
Stock Exchange on November
foreign investors, it also an
23 per cent for the past few
from "least developed
The listing of Bangla Bond is
from its investments in
Some remarkable
Group's private sector lending
achievements have marked country" status by 2024. years, which has raised 11. Issued by the World Bank Bangladesh and convert the investors often face acid test for the sustainability a silver lining among the
of Bangladesh's growth. The
dark clouds of uncertainty in
uncertainty about robust
Despite the accomplishments,
significant hurdles while
the past few years for there are several aspects of future growth. Private arm International Finance amounts back into dollars to trying to invest in interest from investors has Bangladeshi private sector.
Bangladesh; the country has the economy which are investment is essential to Corporation (IFC), the bonds pay the offshore investors in Bangladesh; they range from been remarkable, leading to a Although the size of the
Bangla Bond has the become one of Asia's most concerning. There are a few generate growth and are worth $9.5 million, and the taka bonds. logistical to infrastructural 30 per cent oversubscription initial offering is meagre
potential to be a incredible and unexpected worrying indicators which employment for the the proceeds will be used for of the first tranche. The compared to the demands of
groundbreaking event in success stories. Aided by have prompted the growing workforce. In order investment in private Leverage of impediments. Bangla Bond proceeds of the first tranche our economy, it has the
will make the process easier
our history in terms of robust growth in the stakeholders of our economy to achieve an 8 per cent infrastructure projects, as were converted to taka and potential to be a
alluring foreign funds manufacturing sector and worried about the growth by 2020, the Private well as public-private Local and hassle-free. The local lent out to Pran-RFL Group, groundbreaking event in our
currency bond issuance can
for investment in incremental rise in in-bound sustainability of the rapid Investment-GDP ratio partnership initiatives. All Currency which was about Tk 80 crore, history in terms of alluring
building essential remittances, Bangladesh has growth. One of the biggest requires to be at least 30 bond payments (including the International investors are bypass the risks of borrowing at 11-11.5 per cent interest. foreign funds for investment
in foreign currency, which
infrastructures and play become the concerns for the future of our per cent. The Government initial subscription amount IFC plans to issue multiple in building essential
a crucial role to help us second-fastest-growing economy is the poor state of of Bangladesh has recently and any subsequent coupon often interested in local can be subject to fluctuating tranches amounting to $300 infrastructures and play a
currency-based bonds because
exchange rates; so it makes
achieve our Sustainable nation in South Asia. private sector investment. issued Bangla Bond to and principal payments) will million over the next couple crucial role to help us
Development Goal According to the World Bank, Despite the gradual rise in solve the stagnant private be settled in dollars, in an they do not carry the risks of sense that local investors of years, with the next round achieve our Sustainable
interest rate fluctuations.
would prefer to borrow in
Targets. By Asif Tarafdar Bangladesh's GDP is the investment-GDP ratio investment scenario. amount determined based on Concurrently, foreign local currency. taking place early next year. Development Goal Targets.
26