Deutsche Bank AG, a German global bank and financial services company, is likely to offer Bangladesh to raise $1bn by floating sovereign bonds, according to official sources.
After Goldman Sachs, the German Bank would come up with the offer today as some other US and UK-based leading companies are also likely to express their interest in assisting Bangladesh to raise dollars from international market.
Deutsche Bank's Bangladesh representative Dr Hasan Imam recently sent a letter to Finance Secretary Mahbub Ahmed in this regard.
Herman Bake, management head of fixed income capital market of the German Bank, will meet finance secretary today where the interest is likely to be placed.
Deutsche Bank opened its Dhaka office two years ago with an intent to become a partner of Bangladesh's financial sector development initiatives.
Meanwhile, during a visit last week, Goldman Sachs officials also expressed such willingness to raise funds for Bangladesh from international bond market as the government is toying with the idea for last several years to implement development projects amid shrinking foreign aids.
They placed the willingness to become issue manager of bonds at a meeting with Finance Minister AMA Muhith at his office.
The officials assured finance minister of raising $2-3bn in just three months. Bangladesh is one of “Next 11” countries identified by Goldman Sachs in 2005 as fast growing economies.
After the meeting, AMA Muhith said the interest rate of the bond will be minimum 7% with a minimum maturity period of five years. He, however, said there was scope for bargaining on maturity period.
In 2011 the government took a move to issue sovereign bonds to raise $500m from the international market to implement development projects because of poor availability of soft loans from the donors.
But it backtracked after a committee led by Bangladesh Bank Deputy Governor SK Sur Chowdhury identified the risks including appreciation of local currency against dollar and fall in soft loans from donor agencies in last year.
World Bank, Asian Development Bank and Japan International Cooperation Agency suspended around $2bn loans to Padma Bridge project in 2012 following corruption allegations in tender process.
Muhith told the reporters that the government was yet to make any final decision on the offer by Goldman Sachs which could open avenues for implementing mega projects in transport and power sectors.
He said the government was again planning to raise funds from the international market this year after the decision of constructing Padma Bridge with own fund.
