50m Euro loan fund at BB for RMG sector
The government, in support with Agence Francaise de Developpement of France, has constituted a loan fund in Bangladesh Bank worth 50 million euro to support safety remediation, environmental and social up-gradation of readymade garment factories. Under the Programme to Support Safety Retrofits and Environmental Upgrades in the Bangladeshi Ready-Made Garments Sector Project, the AFD would sponsor the amount while technical assistance worth 14.29 million euro for participating financial institutions (PFIs) and RMG factories was also offered under the SREUP sponsored by European Union, Kreditanstalt fur Wiederaufbau (KfW), Gesellschaft fur Internationale Zusammenarbeit (GIZ) and Bangladesh Bank. According to a circular issued by Bangladesh Bank on Sunday, PFIs would be provided with pre-finance for disbursing the credit to eligible RMG factories under the loan fund for Safety Retrofits and Environmental Up-gradation. It said that eligible RMG factories would get loan amount up to one million euro with maximum 7 per cent interest rate and the loan amount might be extended up to 3 million euro for major environmental up-gradation. The maturity of the loan would be usually 3 to 5 years but in case of major environmental up-gradation or any other duly justified and documented case, it might be extended up to seven years. As per the circular, BB would provide the pre-finance fund to the PFIs with 3.5 per cent interest rate and the PFIs would have to bear the credit risk of end-borrowers. According to the BB circular, RMG companies owning both a RMG factory and the building, companies owning a RMG factory but not the building and owners of a building where at least one factory is located would be eligible for the fund.
Japanese Firms bullish on Bangladesh
According to a survey conducted by Japan External Trade Organization (Jetro), the majority of Japanese companies operating in Bangladesh plan to go for business expansion over the next two years thanks to cheap labour and high profitability. Some 73.2 percent of the 57 companies interviewed said Bangladesh is their top priority for business expansion; 61 percent said the country has high growth potential. The findings of the survey, which was conducted among 5,073 Japanese firms in 20 Asia and Oceania countries, were unveiled yesterday by D Arai, president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI). Out of the 20 countries, Bangladesh came in the second spot in terms of profitability for Japanese companies. Some 62.2 percent of the Japanese companies operating in Bangladesh expect an increase in profit in 2019 from that a year earlier. The survey also found some 56.6 percent of the Japanese companies planning to increase the number of local employees in the next one year in Bangladesh.
WB to provide $100m to upgrade four city areas
As per the report of UNB, the World Bank has approved $100.5 million to improve public spaces and urban services in four neighbourhoods under the Dhaka South City Corporation. The Dhaka City Neighboorhood Upgrading Project will benefit about a million residents. It will especially cater to the needs of women, youths, elderly and disabled, who often refrain from using public amenities. Under this project, livability of the selected areas will be enhanced by improving open public spaces such as parks, playgrounds, waterfronts, streets, sidewalks, and public buildings such as community centres. As per the World Bank Team Leader for the Dhaka City Neighbourhood Upgrading Project, well-designed public areas such as streets, sidewalks, parks, lighting, and multipurpose community centres can make a big difference to people’s lives. They can immensely improve the living standards by improving safety, health, mobility, recreation and economic vibrancy.
Lending rate to be brought down: PM
Prime Minister Sheikh Hasina yesterday said the government will take measures again to reduce the interest rate for the sake of the country’s industrialisation. As per the PM, Govt. will sit again to discuss how to reduce the interest rate of bank loan. The industries ministry organised the National Industrial Fair 2019 at Bangabandhu International Conference Centre with a view to promoting and expandin the market of local industrialg products and attract investment. The prime minister thought that the interest rate of bank loan is the biggest barrier to the country’s industrialisation now. As per the PM, the government earlier took initiatives to reduce the bank interest rate and provided some facilities to the banks.As per the Prime Minister, some banks brought down the interest rate to 9 percent accordingly, but all didn’t do so. It (the rate) was taken to 14-16 percent again. The premier questioned why the banks did not reduce the interest rate despite enjoying the facilities.
Reliance Insurance approves 10pc stock, 15pc cash dividend
The 31st Annual General Meeting of Reliance Insurance Limited was held on Sunday at the Hotel Lake Shore, Gulshan-2, Dhaka. Mr. Shamsur Rahman, Chairman of the Board of Directors, presided over the meeting. The meeting was attended by a large number of shareholders, who took keen interest in the proceedings. The shareholders expressed their deep appreciation for the prudent and judicious steps taken by the management in running the affairs of the Company. They also put forward a number of suggestions, which were duly noted by the management. The Shareholders in the Annual General Meeting approved 10% stock & 15% cash dividend for the year 2018. During the year 2018 Company achieved a gross premium income of Tk. 2,689.26 million as against Tk. 2,572.67 million in the previous year and earned pre-tax profit Tk. 694.43 million.
Most ten-traded Companies snare 36pc transaction
Most ten-traded firms grabbed more than 36 per cent transaction on the Dhaka Stock Exchange (DSE) Sunday while United Power dominated the chart for the second day in a raw. As per the Market Analysts, investors continued to show their appetite for United Power shares amid earnings expectation as the January-March quarter ended. The United Power Generation & Distribution Company posted a modest earnings growth in the period of July-December 2018. Its earnings per share (EPS) (separate) rose 15.18 per cent to Tk 5.31 for July-December 2018. The EPS (separate) was Tk 4.61 for the same period in 2017. According to statistics from the DSE, about 958,541 shares of United Power were traded, generating a turnover of Tk 392 million, which was 10.83 per cent of the DSE’s total turnover. The total turnover on the DSE stood at Tk 3.61 billion on Sunday which was Tk 3.52 billion in the previous day. The power generation company’s share price closed at Tk 410.10 on Sunday, gaining 1.73 per cent over the previous day.
Eastern Lubricant’s price soaring sans PSI
Share price of state-run Eastern Lubricants was soaring despite having no price sensitive information (PSI). Despite the country’s capital market passing a bearish trend throughout the month amid low trading activities, the company’s share price continued to rise. In the last one month, the share price of Eastern Lubricants share price jumped 27 per cent or Tk 337 each to close at Tk 1,597.30 each on Sunday at the Dhaka Stock Exchange (DSE). The company’s share price was Tk 1,260.10 each a month ago on March 03. In the last one year, its share price traded between Tk 965 and Tk 1,759 on the DSE. Following the recent ‘abnormal’ price hike, the prime bourse served a show cause notice to the company. However, the company in a knee-jerk response informed the DSE on Sunday that there is no undisclosed price sensitive information for recent unusual price hike of its shares. Even after serving of show cause notice, the share price of the company rose further by 6.24 per cent or Tk 94 each on Sunday.
SBAC to go public
South Bangla Agriculture and Commerce (SBAC) Bank, a fourth generation private commercial bank, has taken initiative to go public under the fixed price method. As part of offloading shares, the SBAC Bank signed an agreement on Sunday with its issue manager-ICB Capital Management. Md. Golam Faruque, MD & CEO of the bank, and Md. Sohel Rahman, CEO (additional charge) of ICB Capital Management Ltd., signed the agreement from respective companies on Sunday at head office of the Bank in the capital Dhaka.
Global Money Week at Daffodil University ends
The managing director of the Dhaka Stock Exchange (DSE) has laid importance on proper investment of small savings to achieve the desired target of the economic development. As per the MD of DSE, the country’s capital market has a vast prospect which is linked with the economic development. The DSE managing director said this on Sunday while addressing at the closing ceremony of the Global Money Week, 2019 held at Daffodil International University.
Shamim elected CSE Chairman
Major General (retd) Mohammad Shamim Chowdhury was elected as the chairman of Chittagong Stock Exchange Ltd on Sunday. The CSE board elected Shamim as chairman for three years in line with the Exchanges Demutualisation Act 2013. Shamim replaced AK Abdul Momen who was appointed as foreign minister of the government. Shamim retired from the Bangladesh Army in 2013, after completing almost thirty-five years of service.
3 suspected drug dealers, Rohingya woman killed in Cox’s Bazar
Three alleged drug traders were killed in ‘shootouts’ with the police and Border Guard Bangladesh (BGB), in Cox’s Bazar’s Teknaf Upazila, reports bdnews24.com. Two of the dead were arrested by the police over drug-related cases and had accompanied law enforcers to the raid.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 60.48||↑0.34||↑0.57%|
|Crude Oil (Brent)|| $ 68.05||↑0.47||↑0.70%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.2910|
|GBP 1||BDT 108.4740|
|EUR 1||BDT 93.4281|
|INR 1||BDT 1.1972|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<