• Tuesday, Dec 10, 2019
  • Last Update : 09:30 pm

A bond for Bangladesh

  • Published at 12:07 am November 13th, 2019
Bangla Bond
Finance Minister AHM Mustafa Kamal, Prime Minister’s Adviser on Private Sector Industry and Investment Salman F Rahman and Bangladesh High Commissioner to the UK Saida Muna Tasneem attend the enlistment ceremony in London on Monday, November 11, 2019 Collected

The benefits to the Bangladesh economy, no doubt, will be numerous

It is wonderful to see that a Bangladeshi taka bond, named Bangla Bond, has been listed on the London Stock Exchange.

The bond, issued by World Bank Group’s private sector lending arm International Finance Corporation, is worth $9.5 million, and the proceeds have been planned for investment in private infrastructure projects, as well as public-private partnership initiatives.

This will indeed provide a much-needed boost to the private sector of the country, which has been the driving force behind the growth in Bangladesh’s economy.

One of the good things about this bond is that it will cut down on the many formalities that private sector initiatives currently involve; the process can be time consuming and expensive, which shows why the taka bond is an attractive option.

The benefits to the Bangladesh economy, no doubt, will be numerous, and will improve the profile of the Bangladesh taka globally. 

If we are to really meet our Sustainable Development Goal targets, we simply cannot ignore the role of private investment, and the massive financial needs in not just infrastructure, but manufacturing, housing, and modern services.

A local currency bond issuance can bypass the risks of borrowing in foreign currency, which can be subject to fluctuating exchange rates; so it makes sense that local investors would prefer to borrow in local currency.

With the interest rate in hard currencies at a low level, now is a great time for the issuance of taka bonds, and if the Bangla bond becomes popular with overseas investors, no doubt we will see a bolstering of the taka and a boon to our overall economy.