Metro moment is finally here

Bangladesh enters a new era in communication today with the launch of its first metro rail, promising fast, reliable, and safe commute in a traffic-choked Dhaka. The new mode of public transport comes at a time when buses, auto rickshaws, rickshaws, and taxis failed to meet the service quality desired by more than 20 million in the city. Dhaka, which grew exponentially over the years, earned notoriety for its unbridled traffic congestion caused by poorly managed rickety public vehicles and inefficient traffic management. The metro rail, albeit a heavy investment project, is expected to help ease the perennial problems of congestion and pollution. Metro rail is finally ready to serve the city dwellers, overcoming myriad challenges, including frequent changes in the design right from the beginning. Besides, the Holey Artisan café attack in 2016 and the pandemic also caused major setbacks to the project. Hundreds of experts, engineers and workers toiled to make the project and the grand opening a success. The city dwellers, who endured immense sufferings due to the construction work, are excited and curious to see the roll-out of the highly technical transport system. Bangladesh is the third country in South Asia to have metro rail after India and Pakistan. India introduced its first 3.4km underground metro rail in Kolkata in 1984 while Pakistan launched its mostly-elevated metro line in Lahore in October 2020.

Source: https://www.thedailystar.net/news/bangladesh/transport/news/metro-moment-finally-here-3206686

Central bank meets exporters today on local LC payment in taka

The central bank will meet garment exporters to determine whether it is possible to open and settle local back-to-back letters of credit (LCs) in local currency amid a dollar crunch following Bangladesh’s forex reserves fall, according to officials and businessmen. Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Textile Mills Association (BTMA) will participate in the meeting at the Bangladesh Bank on Wednesday. Currently, local back-to-back LC opening and settlement requires payment in dollars. However, the BKMEA in early November proposed to the central bank that it be allowed to open and settle LC payments in taka as 80% of the knitters source raw materials locally. n a letter to the central bank, the BKMEA said LC opening and payment settlement in Bangladeshi taka instead of dollars at the local stage would help ease the greenback shortage to some extent. The BKMEA mentioned that exporters are incurring losses in LC opening and settlement due to the Tk7-8 dollar-taka conversion gap. “Exporters will get relief from the currency exchange gaps if the demand for LC payment in taka is met.” 

Source: https://www.tbsnews.net/economy/central-bank-meets-exporters-today-local-lc-payment-taka-558898

SIBL gets nod for Tk 600cr bond

Social Islami Bank gets nod to raise funds of Tk 600 crore by issuing non-convertible, unsecured, mudaraba subordinated floating rate bond. The profit rate of the bond would be shariah based banks’ average deposit rate in the latest six months and additional 2 per cent. The fund would be raised through private placement from institutional investors and high-net-worth individual investors. Face value of each unit of the bond is Tk 1 crore. With the bond proceeds, the bank will strengthen its tier-2 capital base. DBH Finance PLC is the trustee of the SIBL bond and Standard Chartered Bangladesh the arranger.

Source: https://www.thedailystar.net/business/economy/news/sibl-gets-nod-tk-600cr-bond-3206681