Bangladesh is set to issue sovereign bonds in the international market for the first time.
The government aims to raise $500 million to $1 billion by selling these bonds within the next three months.
Following meetings with institutional investors in Europe and New York, Dhaka has received strong signals of interest.
Fifteen major investment firms—including global financial giants BlackRock, Pacific Investment Management Company (PIMCO), TPG Inc., Macquarie, GoldenTree Asset Management, and MetLife—have shown preliminary interest in the bond issuance.
According to a report by US media outlet Bloomberg, a senior government official stated that Bangladesh is preparing to collect $500 million to $1 billion over the next three months through its debut foreign-currency sovereign bond sale.
Speaking to Bloomberg on Saturday, Tanvir Shahriar Ghani, special assistant to the prime minister on investments and capital markets, said JPMorgan Chase & Co. will manage the upcoming bond issue.
However, the plan still requires final approval from Prime Minister Tarique Rahman.
This debt sale initiative comes as global borrowing costs have risen following recent interest rate hikes by the US Federal Reserve, forcing developing nations to adapt to higher borrowing expenses.
Ghani, who heads the government's bond issuance committee, noted that this environment is influencing Dhaka's approach regarding pricing.
"The interest rate has increased by 25 basis points, which will affect yields across emerging markets. We intend to be cautious regarding bond pricing and proceed accordingly," Tanvir Shahriar said.
He added that while balancing its financing requirements, the government remains "sensitive" to the cost of capital.
Investor demand for Bangladesh’s inaugural global debt offering appears strong following non-deal roadshows with institutional investors in Europe last week.
"The level of interest in the sovereign bond is extremely high," Tanvir Shahriar remarked. He added that subsequent meetings in New York were strictly focused on institutional investors.
Ghani declined to disclose specific details about the transaction structure, noting that the deal involves certain "legal sensitivities" that must be handled with care.
Bangladesh Bank first introduced the concept of issuing sovereign debt to foreign investors in 2012.
Although the government revisited the idea in later years, it was never implemented until now.
