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TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Important Business News Extracts October 27, 2019

Taka Bond ready to raise $10m from London Mkt

Bangladesh is going to float a taka-denominated bond for the first time on the London Stock Exchange next month to raise funds for the local private sector, according to officials on Saturday. The International Finance Corporation [IFC], a sister concern of the World Bank, would float the taka-linked bond equivalent to US$10 million on the London bourse in the first phase, the global lending agency confirmed. The bond is likely to be named “Bangla Bond” in the European market, according to official sources. Finance Minister AHM Mustafa Kamal and Prime Minister’s Adviser on Private Industry and Investment Salman F Rahman are scheduled to attend the “Bangla Bond” enlistment ceremony at the London Exchange House on November 11, according to officials. The IFC would be a guarantor on the Taka-linked bond of Bangladesh in the international market. The proceeds from the bond in the European market would be invested back in Bangladesh for development of the private sector. The IFC so far floated bonds denominated in 52 currencies in the international market to mobilize funds for the countries concerned, according to IFC Senior Country Officer Ms Anwar. Neighboring India in 2014 offloaded its Rupee-denominated “Masala Bond” in the overseas market to finance its infrastructure projects. The IFC, on behalf of the Indian government, initially offloaded a small-size Masala Bond. Its size was raised to $2.7 billion within 2-3 years for its popularity in the overseas markets.

Source: https://today.thefinancialexpress.com.bd/first-page/taka-bond-ready-to-raise-10m-from-london-mkt-1572107479

 Bond Market Big Source of Funding

High issuance cost coupled with the lack of an effective secondary bond market and the required level of financial literacy remains the key hurdle to overcome in building a vibrant fixed income market in the country, says a keynote paper. It also says absence of benchmark indices and some unresolved issues concerning uniform tax benefits for zero coupon bonds are also barriers to developing a bond market. The paper was presented at the roundtable on ‘Development of Bond Market in Bangladesh’ organized by the City Bank Capital [CBC] at a city hotel on Saturday. According to the BIDA Executive Director Bangladesh needs to work hard to become a developed country by 2041 and the country’s financial sector can collect its development funds from the bond market. Many Bangladeshis are established businessmen in different countries including the UK, the USA, Australia and the UAE. They can be potential investors in the bond market. For the period from 2016 to 2040, Bangladesh needs US$608 billion in infrastructure investment alone to achieve its target of becoming a developed country. But as per the current investment trend, there might be a deficit of $200 billion, especially in power, telecom and water sectors. The deficit can be met with funding from an effective bond market.

Source: https://today.thefinancialexpress.com.bd/last-page/infrastructure-projects-1572107637

 Lift 5.0pc AT on Poultry, Fish Feed Raw Materials Import

Leaders of two associations involving poultry and feed industries have demanded withdrawal of 5.0 per cent Advanced Tax [AT] on import of raw materials for poultry and fish feed to save the sector of the country. They placed a charter of demands at a press conference styled ‘Withdraw AT on import of raw materials for the poultry, fish and dairy feed’, at the National Press Club in the capital on Saturday. The demands also include removal of a 5.0 per cent tax at source on sourcing raw materials from domestic sources. Feed Industries Association of Bangladesh [FIAB] and Bangladesh Poultry Industries Central Council [BPICC] organized the event. Mentioning that the feed industry is a VAT-exempted sector, BPICC President Moshiur Rahman questioned the rationality of imposing AT on the sector and realizing the same from them. The AT and the tax at source have increased the production costs which have hit the industry, he said cautioning the small and medium scale poultry, fish and dairy farms are likely to be hit hard by it. The paper mentioned that the poultry sector was a tax exempted one until fiscal year 2014-15 [FY ’15]. Later, the government imposed taxes on the sector on several occasions despite the fact that the sector really needed to remain a tax-exempted one till 2030.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/lift-50pc-at-on-poultry-fish-feed-raw-materials-import-1572103874

 RAKUB recovers Tk 2.42 billion Outstanding Loan in Rajshahi

Rajshahi Krishi Unnayan Bank [RAKUB] has recovered outstanding loan worth Tk 2.42 billion [Tk 242 crore] through a grand loan recovery camp in Rajshahi recently, reports BSS. Headquartered in Rajshahi, the specialized Bank has arranged the grand camp in all its branches simultaneously as part of a 54-day special package from September 1 to October 24, according to RAKUB sources in Rajshahi city. Of the recovered loan, Tk 2.12 billion [Tk 212 crore] was from classified loan, Tk 100 million [Tk 10 crore] from rescheduled loan and Tk 200 million [Tk 20 from] other outstanding loans. Side by side with the loan recovery, loan of Tk 2.7 billion [Tk 207 crore] was disbursed and Tk 390 million [Tk 39 crore] was collected as deposit through different kinds of accounts in the grand camp. As the largest development partner in all 16 northwest districts of Rajshahi and Rangpur divisions, RAKUB has been operating its Banking activities in the country’s northwest region targeting its agricultural sector.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/rakub-recovers-tk-242-billion-outstanding-loan-in-rajshahi-1572103967

 UAE help sought to set up Halal Certification Centre

The apex trade body has sought cooperation from the United Arab Emirates [UAE] in setting up a global halal certification centre in Bangladesh. The facility would mutually benefit both the two countries, it said on Saturday. Federation of Bangladesh Chambers of Commerce and Industry [FBCCI] president Sheikh F Fahim made the call during a meeting with UAE ambassador in Dhaka Saed Mohammed Almheiri at FBCCI office. Mr. Sheikh F Fahim underscored the importance of knowledge and technology transfer with the UAE for halal certification. The centre would aim to tap the business potential in the international halal market. FBCCI as an umbrella trade organisation would disseminate technical know-how on halal processing to 500-plus member bodies and 30 million entrepreneurs in Bangladesh. It would facilitate halal exports from Bangladesh to the Gulf Cooperation Council [GCC] countries and other Muslim-majority states. At the event, the UAE envoy expressed his keen interest in working with FBCCI to set up a comprehensive halal certification centre.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/uae-help-sought-to-set-up-halal-certification-centre-1572103987

 Blockchain Tech ‘safer, to cut Cost of Financing’

Bangladesh should adopt blockchain technology in the financial sector as it is still evolving and it is the future, said one of the country’s top IT professionals on Saturday. Blockchain is a system in which a record of transactions made in bitcoin or any other crypto currency is maintained across several computers that are linked in a peer-to-peer network. BRAC Bank in collaboration with Policy Research Institute of Bangladesh [PRI] organized the workshop on “Application of blockchain as a technology for SME [small and medium enterprise] financing and mortgage/lien” at its head office. Founder and President of the Hong Kong Blockchain Society Lawrence Ma conducted the workshop. The government is more prepared to adopt blockchain technology than the private sector.

Source: https://today.thefinancialexpress.com.bd/last-page/blockchain-tech-safer-to-cut-cost-of-financing-1572107854

 Denim Expo to begin in City Nov 05

A two-day Bangladesh Denim Expo [BDE] will begin in the city on November 05, focusing on driving the country’s denim industry towards to the direction of responsibility. The 11th edition of the fair that aimed to promote locally made denim goods will be addressing the level of social, environmental and economic responsibility the apparel industry holds to ensure that the products are produced in the most ethical, environmentally friendly and sustainable manner. Swedish retailer H&M, one of the largest buyer of locally made Readymade Garment [RMG] industry, is collaborating with BDE to be held at the International Convention City, Bashundhara in the city. Every stakeholders involved in denim industry have a degree of responsibility. Responsibility is about environment, climate change, and circularity, sourcing and working conditions. So being responsible and accountable to the earth and workers, it is the duty of all stakeholders in the apparel industry to acknowledge the responsibility and to analyses their business practices, for the benefit of all. A total of 100 exhibitors from 11 countries, including host Bangladesh, china, Japan, Italy, India, Singapore, Brazil, Spain, Pakistan, Turkey and Germany will take part.

Source: https://today.thefinancialexpress.com.bd/trade-market/denim-expo-to-begin-in-city-nov-05-1572101630

 BGMEA for measures to remain Competitive

Bangladesh Garment Manufacturers and Exporters Association [BGMEA] has sought at least an additional Tk 2.0 on top of the market-based exchange rate per US dollar. It also demanded several other measures to help the country’s largest export earning sector overcome the internal and external challenges and remain competitive in the global market. The trade body urged the authorities concerned to provide loan rescheduling facilities with a provision for 2.0 per cent down payment and doubling the tenure for the factories that are not ‘habitual defaulter’. It further sought additional cash incentive to encourage both local and foreign investment in manmade fiber manufacturing to reduce large dependency on cotton-based items, diversify products with highly demanded value added items and modernize factories.

Source: https://today.thefinancialexpress.com.bd/trade-market/bgmea-seeks-slew-of-measures-to-remain-competitive-1572101466

Winter Vegetables appear in Natore Kitchen Markets

The Department of Agriculture Extension [DAE] has taken up plan to cultivate varieties of winter vegetable on a vast tract of land in the district this season. According to DAE office sources, over 14,000 hectares of land have targeted to farm winter vegetables to produce over 12,000 tonnes of yield. Around 10,000 hectares of land have already come under vegetable cultivation. Radish, spinach, red spinach, snake bean, bean, carrot, bottle gourd, cucumber, okra, egg-plant, cauliflowers and cabbage are being cultivated in full swing in the district. A good number of growers told this correspondent some winter vegetables have already appeared in the kitchen markets. They are making a handsome profit from the sale.

Source: https://today.thefinancialexpress.com.bd/country/winter-vegetables-appear-in-natore-kitchen-markets-1572103056

Local and Global Stock Indices *

Index Name Close Value Value Change Percentage Change
DSEX 4772.00186 ↑ 45.38 ↑ 0.96
DJIA 26,958.06
↑ 152.53 ↑ 0.57%
FTSE100 7,324.47 ↑ 3.78 ↑ 0.05%
Nikkei 225 22,799.81 ↑ 49.21 ↑ 0.22%

World Commodities *

Commodity Close Value Value Change Percentage Change
Crude Oil (WTI) $ 56.66 ↑0.43 ↑0.76%
Crude Oil (Brent) $ 62.02 ↑ 0.35 ↑ 0.57%
Gold Spot $ 1,504.63 ↑0.65 ↑ 0.04%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1 BDT 83.0893
GBP 1 BDT 106.531
EUR 1 BDT 92.0314
INR 1 BDT 1.17496

*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<