Dhaka, Nov 24 – Overseas investors have shown interest in ‘Bangla Bond, the first-ever Bangladeshi Taka-denominated bond listed on the London Stock Exchange (LSE) on November 11. Finance Minister AHM Mustafa Kamal said ‘Bangla Bond’ would help raise money from overseas investment which will be invested back in Bangladesh for further strengthening its private sector.
The International Finance Corporation (IFC), a sister concern of the World Bank, floated the bond, said the Bangladesh High Commission in London.
In a recent interview, Wendy Werner, IFC’s country manager for Bangladesh, Bhutan and Nepal, said investors are showing strong interest in ‘Bangla Bond’.
Initially, the ‘Bangla Bond’ is equivalent to $10 million on the London bourse and it will have a three-year maturity, with a 6.3 percent annual rate of interest.
The IFC will play the role of guarantor of ‘Bangla Bond’ in the international market.
The first tranche was 30 percent oversubscribed, meaning the demand was more than the supply – a hint of what possibly lies ahead for Bangladesh and ‘Bangla Bond’.
Finance Minister Kamal, Prime Minister’s Private Sector Industry and Investment Adviser Salman F Rahman and Bangladesh High Commissioner to the UK Saida Muna Tasneem attended the enlistment ceremony ‘The Ring, The Bell’ at the LSE.
During the enlistment ceremony, a large number of UK government and IFC officials and investors from the UK and Bangladesh were present.
The proceeds from this bond in the European market will be invested back in Bangladesh for development of its private sector. – UNB
