ICB raises Tk 7.5b from subordinated bonds
The Investment Corporation of Bangladesh (ICB) has so far raised Tk 7.50 billion from the issuance of subordinated bonds floated as part of its market supportive measures. The state-run corporation is expected to raise Tk 20 billion by offering the subordinated bonds. Of the total amount, Tk 15 billion will be invested in the listed securities. The ICB officials expressed the hope that they would receive the remaining funds soon. On July 17, the Bangladesh Securities and Exchange Commission (BSEC) approved the ICB’s proposal for raising a fund of Tk 20 billion through issuing non-convertible fixed rate subordinated bond. The securities regulator also set a condition that Tk 15 billion has to be invested in the listed securities to boost the country’s capital market. Accordingly, the ICB has already started making investment in the capital market after it received a fund of Tk 7.50 billion from three institutions by offering the subordinated bonds. We have already received Tk 7.50 billion from the Agrani Bank, the Dhaka Stock Exchange (DSE) and the Dhaka Bank. The remaining funds are in the pipeline. Of the amount, Tk 7.0 billion came from Agrani Bank, Tk 400 million from the DSE and Tk 100 million from Dhaka Bank. Of the remaining funds, Tk 5.0 billion will come from Janata Bank, Tk 5.0 billion from Sonali Bank, and Tk 1.50 billion from Rupali Bank.
US-China trade war a blessing
The ongoing trade war between the US and China has been a blessing for Bangladesh as the local exporters, especially garment makers, have been receiving a lot of work orders from both China and the US, according to a new study revealed yesterday. It is an opportune moment for Bangladesh as China also announced tariff cuts on goods imports from the country. Many buyers are coming back to Bangladesh and the country’s share in the American garment market increased 6.46 percent in the first nine months of the year, said Ali Ahmed, chief executive officer of Bangladesh Foreign Trade Institute, who authored the study Trade war and its implications for Bangladesh. Other than the inflow of work orders for apparel items for competitive pricing, Bangladesh will also benefit in its cotton purchase as China has stopped buying from the US. Now, Bangladesh is the largest cotton importer as China stopped sourcing the white fibre to subsidies its domestic growers and to end the previous stocks. Already the cotton price fell 10 percent year-on-year in the October-November period due to oversupply, Ahmed said at the seminar, which was attended by exporters, importers, trade experts, entrepreneurs, trade body leaders and government higher-ups. The global foreign direct investment flows fell 23 percent to $1.43 trillion in 2017. Due to lack of infrastructure we are falling behind in manufacturing electronic products.
7 companies, 2 MFs recommend dividends up to 130pc
Seven listed companies and two mutual funds (MFs) recommended dividends up to 130 per cent in last week. Of the securities, the MFs have recommended dividends between 5.0 per cent and 5.5 per cent. 100 per cent cash dividend for the year ended on June 30, 2018 was recommended by the board of directors of Eastern Lubricants. The company disbursed same amount of cash dividend in previous year. The company has also reported EPS of Tk. 36.23 and NAV per share of Tk. 169.31 for the year ended on June 30, 2018 as against Tk. 41.00 and Tk. 143.07 respectively for the same period of the previous year. Padma Oil Company has recommended 130 per cent cash dividend for the year ended on June 30, 2018 against 110 per cent cash dividend disbursed in previous year. The company has also reported EPS of Tk. 34.18 and NAV per share of Tk. 126.78 for the year ended on June 30, 2018 as against Tk. 20.68 and Tk. 103.60 respectively for the same period of the previous year. National Tubes has recommended has recommended 10 per cent stock dividend against same amount of stock dividend disbursed in previous year. For same period, the trustee of the fund has reported EPU of Tk. 0.41, NAV per unit of Tk. 10.86 on the basis of market price and NAV per unit of Tk. 11.04 on the basis of cost price as against Tk. 1.03, Tk. 12.46 and Tk. 11.45 respectively for previous year.
Leather Footwear, goods expo begins in city Thursday
Leather goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) President Md Saiful Islam addressing a press conference at a city hotel on Saturday, announcing the schedule of a three-day expo titled ‘Bangladesh Leather Footwear and Leather Goods International Sourcing Show (BLLISS) 2018’ that begins in the city on Thursday.
Belt and Road Initiative: New facet of Chinese economic diplomacy
A two-day Belt and Road Forum for International Cooperation closed in Beijing on May 15, 2017 with the announcement that the next Silk Road summit will be held in 2019 and Chinese President Xi Jinping claiming that the BRI has no political agenda. Economic diplomacy, as a strategy of enhancing national prosperity, has been a significant priority for many countries across the world in the period following the Cold War. The financial crisis since the turn of the twenty-first century has encountered substantial changes in the field of foreign policy decision-making with a particular focus on economic sectors. The Silk Road Economic Belt and the 21st Century Maritime Silk Road envision global connectivity and economic linkages with peripheral states. In addition, BRI is also expected to build a new type of development cooperation emphasising on the utilisation of all-round economic development through improving the environment for development that determines one of the significant features of Chinese economic diplomacy. Following this policy, the Asian Infrastructure Investment Bank (AIIB) supports the development projects of BRI which is initially funded at US$ 40 billion dollars and eventually raised to US$ 450 billion that is also expected to grow up to US$ 100 billion.
Rajshahi PWD implements 247 projects
The Public Works Department (PWD) has implemented 247 projects involving around Tk 11.08 billion over the last 10 years in Rajshahi division benefiting its people in many ways. PWD sources said the department has also been implementing many other development schemes at present with an estimated cost of around Tk 44.89 billion in the division comprising eight districts. They have implemented 70 projects relating to infrastructural development of police department both in rural and urban and semi-urban areas at a total cost of around Tk 1.63 billion. Under a scheme to this effect, massive development has taken place at Bangladesh Police Academy at Sardah. Construction of 26 Fire Service and Civil Defence stations and five regional passport offices was completed by spending Tk 655.2 million. A marine academy has been founded at Pabna while an institute of marine technology at Sirajganj. Construction of a complex for Rapid Action Battalion (RAB)-5 has been completed at a cost of over Tk 757.2 million.
MTB opens lounge at Ctg airport
Mutual Trust Bank (MTB) yesterday launched a dedicated lounge at the domestic terminal of the Shah Amanat International Airport Chittagong with a view to providing its customers with greater comfort and convenience when travelling in and out of the port city. The bank’s privilege clients and card holders of MTB Signature, MTB Master Card World, MTB VISA Platinum, Master Card Titanium, MTB VISA World and MTB Master Card will have access to the lounge. The 2,000 square-foot MTB Air Lounge has modern architecture, plush interiors, a prayer room and the best class catering. MTB has a network of 114 branches, 73 agent banking centres, 10 Kiosks, 250 plus ATMs and over 3,100 point of sales machines located at prime commercial, urban and rural areas.
Technical education ‘can help attain SDGs’
There is a need for technical education and developing entrepreneurship to help achieve the country’s Sustainable Development Goals (SDGs) by 2030. BITAC is creating employment opportunity for the needy and poor section of youths in the society and helping them in reducing poverty. A total of 22,780 people received training under the project and 99 per cent of the trainees were employed in the industrial sector from July 2009 to September 2018. Of the total, 9,581 female and 13,199 male trainees are contributing to their families and the economy. The SEPA project was launched in 2009. Under the project, 300 females in each batch are getting three-month training in nine trades from Dhaka centre and males are receiving two-month training in three trades from four other centres.
Footwear export fetched $438m last fiscal year
Bangladesh bagged $438 million in export earnings from the footwear sector alone in the last fiscal year and has become the sixth largest footwear and leather goods exporter in the world. The three-day show to be organised by the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) will kick off at International Convention City Bashundhara in the capital on November 22. Every year, the South Asian nation manufactures 330 million square feet of finished leather and sends abroad around 230 square feet of the product. The information was shared at a press conference at the Westin Dhaka hotel yesterday where organisers announced the schedule of the second edition of Bangladesh Leather Footwear and Leathergoods International Sourcing Show (BLISS) 2018. There is no entry fee for the exhibition, which will remain open for the visitors from 10 am to 6 pm. Foreign guests and around 30 brands and buyers from Hong Kong, Germany, Australia, Italy, Japan, France, the USA, the UK, Sweden, India, and Ethiopia will participate in the expo.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 56.46||↑0.00||↑0.00%|
|Crude Oil (Brent)||$ 66.76||↓0.14||↓0.21%|
|Gold Spot||$ 1,223.36||↑10.00||↑0.82%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8010|
|GBP 1||BDT 107.5502|
|EUR 1||BDT 95.6588|
|INR 1||BDT 1.1651|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.