Govt’s borrowing from banks spikes
Government borrowing from banking sources has gone up significantly this month as it is now on a spending spree to materialise different development and non-development programmes by the time this fiscal year ends. The government had borrowed Tk 26,741 crore from banks from July 1 to May 26 of fiscal year 2021-22 against its fiscal target of Tk 76,452 crore. But by June 14, the figure had gone up to Tk 41,444 crore, meaning it had borrowed Tk 14,703 in a span of just 19 days. Tax collection stood at Tk 227,756 crore until April against this fiscal year’s target of Tk 330,000 crore, showed data from the NBR. In addition, investment in national savings certificates has declined to a large extent as the government introduced investment slabs and slashed the interest rate anywhere from 1 percentage point to 3 percentage points on different savings tools last year.
BSEC allows ONE Bank’s Tk 4.0b subordinated bond
The stock market regulator has approved ONE Bank’s proposal to raise Tk 4.0 billion through issuance of seven years floating rate subordinated bonds to raise Tier-2 capital of the bank. The approval came at a meeting of Bangladesh Securities and Exchange Commission (BSEC) held on Tuesday. Chairman of BSEC Prof Shibli Rubayat-Ul-Islam presided over, said a BSEC statement. As per the BSEC approval, the bank will float unsecured, non-convertible, fully redeemable, floating rate subordinated bonds worth Tk 4.0 billion through private placement. The per unit price of the bond is Tk 10 million which will be issued to the local financial institutions, insurance companies, institutional investors, high net worth individual investors through private placement. The board of directors has recommended a 5.0 per cent stock dividend for the year ended on December 31, 2021. In 2020, the bank disbursed 6.0 per cent cash and 5.50 per cent stock dividend. The bank’s paid-up capital is Tk 9.34 billion and authorised capital is Tk 10 billion while the total number of securities is 934.04 mllion.
Dutch co to invest $10.5m in BEPZA economic zone
Checkpoint System Bangladesh Limited-Unit 2, a Netherlands-owned company, is going to establish a garments accessories manufacturing industry in the BEPZA Economic Zone, reports BSS. The company will invest US$ 10.52 million to produce 1,319 million units of different types of Hang Tag, tickets, stickers and labels annually, said a press release. A total of 274 Bangladeshi nationals will get employment opportunities in this factory. An agreement to this effect was signed between Bangladesh Export Processing Zones Authority (BEPZA) and Checkpoint System Bangladesh Ltd.-Unit 2 at the BEPZA Complex in the city on Tuesday. Checkpoint System Bangladesh Limited-Unit 2 would be the second enterprise under the same ownership in the industrial zones operated under BEPZA. Their first one, Checkpoint Systems Bangladesh Limited, has been operating since 2009 in Adamjee EPZ.