Bangladesh gets $256.5m Green Climate Fund
Bangladesh has received $256.5 million from the global Green Climate Fund to promote private sector investment through large scale adoption of energy-efficient technologies in the textile and garment sectors. This is the first concessional credit line for Bangladesh, and the first private sector financing from the GCF in the country, the Infrastructure Development Company Ltd (Idcol) said yesterday. Under the programme, Idcol will get $250 million concessional loan for a tenure of 20 years with a grace period of five years for financing energy-efficient equipment. Another $6.5 million will come as technical assistance (grant) to develop enabling environment by covering areas such as capacity building, awareness, support in loan disbursal and monitoring and evaluation of the programme parameters. Out of $250 million loan, $100 million will be utilised to finance textile sector energy efficiency projects, while $150 million will be channeled to four local financial institutions for financing energy efficiency projects in the RMG sector. The total programme size will be $423.50 million, including co-financing from Idcol, local financiers and the project sponsors, Idcol said. Lenders would get the fund at a flat rate of 1.75 per cent for 20 years. Industries would get the loans at 4.75 per cent, Malik said. The readymade garment sector is the largest industrial contributor in CO2 emissions at 15.4 per cent, followed by the textile sector at 12.4 per cent, according to the GCF website. The programme provides an integrated package of concessional financing for textile and RMG manufacturers, and technical assistance to create an enabling environment and ultimately to reduce 14.5 million tonnes of carbon dioxide equivalent in emissions.
DSE rises riding on banking stocks
Investors went after the banking stocks yesterday pinning hopes on the higher profits posted by banks in the last quarter, resulting a 33.67-point rise in the benchmark general index of the Dhaka Stock Exchange. Stock prices of 29 out of the listed 30 banks rose on the day when the DSEX increased 0.69 per cent to 4,905. Deposits at banks rose 10.49 per cent year-on-year to Tk 1,305,453 crore in the last fiscal year on the back of rules around national savings certificates and record flow of remittance. Turnover, one of the important indicators of the stock market, hit Tk 790.9 crore yesterday, up from Tk 790.1 crore on the previous day. ICB AMCL Second Mutual Fund topped the gainers’ list with a 10 per cent rise followed by Miracle Industries, Hakkani Pulp, Associated Oxygen and Appollo Ispat. Beximco Pharmaceuticals was the most traded stocks that traded worth Tk 63.9 crore followed by Brac Bank, Beximco Ltd, Asia Insurance and Grameen One: Scheme Two. Of the total 357 traded companies, 149 advanced, 127 declined and 71 remained unchanged. CSEX, the benchmark index of the port city bourse, rose 68 points, or 0.82 per cent, to 8,459.37 yesterday. Out of the total 256 companies’ stocks, 108 rose, 101 fell and 47 remained the same.
An extraordinary rise of remittance in extraordinary times
The largely battered hundi system because of travel restrictions, the zero-interest rate on deposit products in western countries, repeated floods in Bangladesh, and a massive collapse in demand in many nations hosting migrant workers from this South Asian nation have taken the inbound remittance to a level that was never seen before. Migrant workers remitted $2.11 billion last month, which was way higher than $1.64 billion flown to the country in the same month a year ago. October’s receipts were the third-highest monthly flow in history, behind July’s $2.59 billion and September’s $2.15 billion. Between July and October, remittance hit $8.82 billion, up from 43.24 per cent year-on-year. Bangladesh received a record $1 billion in just 12 days of November, a rare feat in such a short span of time, according to the finance ministry. Remittance has been on the rise in recent months. Inbound remittance in Bangladesh is expected to accelerate by about 8 per cent to $19.8 billion this year.
Japan to invest $2.0b in BD: Ito
Bangladesh is the future destination of Japanese investments, Japan’s ambassador to Bangladesh Naoki Ito said this during a meeting with president of the Chittagong Chamber of Commerce and Industry (CCCI), Mahbubul Alam on Tuesday. He said Japan will make an investment worth US $2.0 billion in the country. Of the amount, $1.0 billion will be invested in Araihajar upazila of Naryanganj district and another $1.0 billion at the Mirsarai Economic Zone (MEZ) in Chattogram district, Mr Ito informed Mr Alam during a curtsey call on him at the hall room of the CCCI’s World Trade Centre (WTC). Growing economy, increasing GDP and the local and foreign investments are taking Bangladesh towards development now, he said, adding “Dhaka should remove the ‘prevailing obstacles’ on foreign and local investment, execute the Big-B Initiatives and make amendment to some rules for further growth of its economy.” Bangladesh has to create skilled manpower in future for attracting Japanese investment. Japan will always help Dhaka to ensure that Bangladesh attains the SDG in 2030 and become a developed country within 2041.
City Bank’s EGM approves Tk. 4.0b Convertible Perpetual Bond
The Extraordinary General Meeting (EGM) of City Bank was held on Tuesday on a virtual platform. The shareholders unanimously approved contingent Convertible Perpetual Bond for Tk. 4.00 billion (Additional Tier-I Capital), subject to the approval of the regulators. In his welcome speech, Chairman Aziz Al Kaiser mentioned the various challenges persisting in the banking sector due to Covid-19 pandemic and the consistent attempts to overcome those. In the third quarter of this year, City Bank posted a consolidated profit after tax of Tk 3.08 billion, which is 18 per cent more than the same period last year.
Modhumoti Bank signs deal with Digital Healthcare Solutions
Modhumoti Bank Limited has signed a partnership agreement with Digital Healthcare Solutions (Digital Health) recently for telemedicine and related services. Under the agreement, Modhumoti Bank Agent Banking customers will get telemedicine services and Health care services from Agent banking points using Digital Health platform.