BD likely to get $250m this fiscal from WB
The government has recently completed negotiations with the World Bank (WB) over US$750 million budgetary support credit to narrow its fiscal deficit. Within this fiscal year (FY) 2018-19, the government is likely to get $250 million worth of funds from the total $750 million development support credit (DSC) that the government has sought from the global lender, Economic Relations Division (ERD). The remaining $500 million credit is expected to be disbursed within next two fiscal years depending on fulfilment of the conditions set by the WB. We’ve completed negotiations with the WB last week for getting the first tranche of proposed $750 million DSC. The WB has agreed to disburse the first tranche of the credit by this fiscal year. The WB had initially set some “policy reform matrix” like automated readjustment of fuel oil, gas and electricity prices, implementation of the VAT law and formulation of rules under it, corporatisation of a number poorly performing power distribution companies and strengthening the load dispatch centre at Power Development Board. The proposed DSC will help boost employment opportunities through necessary policy and institutional reforms of trade and investment, enhanced systems that protect workers and build resilience and improved policies and programmes for increasing access to jobs for vulnerable populations. If Bangladesh could comply with the suggested policy reforms in the coming years, the WB will provide $250 million each for the next two consecutive fiscal years up to FY 2021. The World Bank is the largest provider of fund to Bangladesh. It usually makes commitment to disbursing US$1.5 billion assistance annually and disburses nearly $900 million on an average.
Stocks rebound riding on power issues
Stocks rebounded on Tuesday, after a single-day break, as some investors showed their buying appetite on sector specific issues. DSEX, the prime index of the Dhaka Stock Exchange, settled at 5,258, advancing 19.52 points or 0.37 per cent over the previous day. The market started on positive note and the core index rose about 26 points within first hour of trading. But later it eroded some of the early gains. Market operators said lucrative price levels coupled with positive support from state-run Investment Corporation of Bangladesh (ICB) helped the market to edge higher. Buying pressure was visible on sector-specific stocks like power, pharmaceuticals and telecommunication sectors. Accordingly, the power posted the highest gain of 2.97 per cent, followed by pharmaceuticals 0.91 per cent, telecommunication 0.36 per cent. Two other indices-the DS30 index and the DSE Shariah Index (DSES)-also edged higher. The DS30 index, comprising blue chips, advanced 11.31 points to finish at 1,866 and the DSE Shariah Index rose 10.67 points to close at 1,213. Turnover, another important indicator of the market, also rose slightly and total turnover amounted to Tk 5.31 billion, which was 2.50 per cent higher than the previous day’s Tk 5.18 billion. Textile sector continue to dominate the turnover chart, grabbing 22 per cent of the day’s total turnover, followed by power with 16 per cent and pharmaceuticals 13 per cent. The engineering experienced highest loss of 0.46 per cent, followed by food with 0.12 per cent and financial institutions 0.11 per cent. The Chittagong Stock Exchange (CSE) ended slightly higher with its CSE All Share Price Index-CASPI-gaining2.63 points to settle at 16,077 and the Selective Categories Index – CSCX -advancing 4.74 points to finish at 9,739. The losers beat gainers as 126 issues closed lower, 77 ended higher, with 27 issues remaining unchanged on the CSE. The port city bourse traded 8.11 million shares and mutual fund units worth Tk 256 million in turnover.
EGCB floats tenders on solar, wind power plants
The Electricity Generation Company of Bangladesh Limited (EGCB) floated two separate tenders last week, inviting separate joint venture (JV) partners to implement a 100 megawatt (MW) solar power plant and a 10 MW wind-based power plant at Sonagazi in Feni district. The state-run company requested interested parties to submit Expression of Interests (EOIs) within the bid submission deadline on December 19 this year. Through these tenders, the ECCB intends to identify and select prospective JV partners to enter into separate memoranda of understanding (MoUs) and subsequently into JV agreements to implement the projects. The EGCB and selected JV partners would establish special purpose vehicles, which will be tasked with, among other things, arranging finance, selecting an EPC (engineering, procurement and construction) contractor, developing land and infrastructure, managing O&M (operation and management) services, and regulating the sales of power from the plants. These projects are parts of the EGCB’s plan to diversify its mix of power generation assets, which currently consist of three thermal power plants totaling 840 MW. The company recently acquired 999.65 acres of land for the solar and wind power projects.
Income Tax Fair kicks off in Ctg
The weeklong Income Tax fair kicked off at the GEC Convention Centre in the port city on Tuesday. On the first day of the fair, hundreds of taxpayers thronged the booths of the Taxes zones and the bank counters to submit their tax returns. The tax officials concerned extended all kinds of services to them so that they can submit their tax returns without any hassle. The fair will continue up to November 19 and taxpayers can pay their taxes from 9:00am to 10:00pm daily at the GEC Convention Centre. The Income Tax Commission office has set up 45 booths at the fair. The booths provide various services like e-TIN registration, re-registration and online return filling guidelines for taxpayers.
Dhaka Bank, IFC sign deal on $ 50m syndicated loan
Dhaka Bank Limited and International Finance Corporation (IFC) recently signed a US$ 50 million syndicated working capital solutions facility agreement. The IFC, private sector investment arm of the World Bank, arranged the facility for the bank with syndication of Bank Muscat, ICICI Bank, The National Bank of Ras Al Khaimah, Axis Bank and Union National Bank, according to a statement. This is the first-ever syndicated loan in Bangladesh arranged by IFC with the global commercial banks. This fund will be utilised for financing trade transactions of Dhaka Bank through its Offshore Banking Unit. A ceremony was held on at the corporate office of Dhaka Bank in the city recently when IFC Country Manager for Bangladesh, Bhutan and Nepal Wendy Werner handed over a crest to Managing Director & CEO of Dhaka Bank Syed Mahbubur Rahman. Senior officials of Dhaka Bank Emranul Huq, Additional Managing Director, Mohammad Abu Jafar, Deputy Managing Director, S.M. Mahbubul Alam, In-charge, International Division were present on the occasion. Ehsanul Azim, Senior Investment Officer and Tahsina Mohsin, Investment Officer from the IFC also attended the ceremony.
UCB gets new MD
United Commercial Bank has recently saw its additional managing director, Mohammed Shawkat Jamil, being promoted as managing director. Jamil started his banking career as a probationary officer at the bank in 1983. He obtained a postgraduate degree in sociology from Dhaka University, according to the statement.
DAE eyes 1.37m tonnes of winter veg production in Rangpur division
The Department of Agriculture Extension (DAE) has fixed a target of producing 1.37 million tonnes winter vegetables from 66,114 hectares of land in Rangpur division this season. The DAE, Bangladesh Agriculture Research Institute, Bangladesh Agriculture Development Corporation and other organisations are supplying adequate quality seeds, agri-inputs and providing necessary technical assistance to the farmers. The commercial banks, including Rajshahi Krishi Unnayan Bank and some NGOs are disbursing easy-term agriculture loan among the farmers to make the farming programme a success. The farmers have started cultivation of winter vegetables and already sowed seezzz on in 15,500 hectares of land after harvesting short duration Aman rice and also started harvesting early varieties of the vegetables. Farming of winter vegetables will get full momentum when harvest of traditional variety T-Aman will begin in full swing from the fourth week of November. Meanwhile, early varieties of winter vegetables have already appeared in local markets bringing smiles to farmers with lucrative prices in the beginning of this Rabi season.
Norway wants to invest more in Bangladesh
Norway is considering making more investment in Bangladesh in the future. Commerce Minister Tofail Ahmed said this to reporters after a meeting with Norwegian Ambassador to Bangladesh Sidsel Bleken at the secretariat office in the city on Tuesday. Bangladesh exports several products, including readymade garments (RMG), to Norway, he said and expressed the hope that the export volume will grow further in the coming days. Some 13 companies, including Grameenphone, of Norway have been operating in Bangladesh, the minister said, adding that Norway is thinking of investing further in Bangladesh. In the last fiscal year, Bangladesh exported goods worth US$ 96.85 million to Norway and imported goods totalling US$63.70 million from that country.
Local fintech raises $1.62m US investment
A local fintech company, which provides loans to small businesses on assessing their online sales and credit ratings, has raised $1.62 million in investment from a US-based company. Already working with local and international partners, ShopUp has disbursed about Tk 3.5 crore in loans till date to micro-entrepreneurs supplying products to e-commerce platforms. Its customers are some 28,000 micro, small and medium enterprises (MSMEs), the majority of which are led by female entrepreneurs like that of Facebook page Rapunzel’s Secret which sells hair oil. There are nearly 300 Bangladeshi e-commerce websites apart from some 350,000 shops on Facebook. ShopUp plans to use the new investment in supporting 100,000 merchants.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 55.42||↓0.27||↓0.48%|
|Crude Oil (Brent)||$ 65.34||↓0.13||↓0.20%|
|Gold Spot||$ 1,203.21||↑0.98||↑0.08%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.6425|
|GBP 1||BDT 108.7436|
|EUR 1||BDT 94.4993|
|INR 1||BDT 1.1598|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.