DOCSLIB.ORG

Study of Bangladesh Bond Market

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Study of Bangladesh Bond Market Study of Bangladesh Bond Market April 2019 Table of Contents Abbreviations ........................................................................................................................................................... ii List of Tables ......................................................................................................................................................... viii List of Figures .......................................................................................................................................................... x Forewords ............................................................................................................................................................... xi Executive Summary.............................................................................................................................................. xiv 1. Introduction ......................................................................................................................................................... 2 1.1. Background to our work ....................................................................................................................................................... 2 1.2. Structure of the report .......................................................................................................................................................... 2 1.3. Our methodology and approach ...................................................................................................................................... 2 2. Overview of Bangladesh Infrastructure Financing Market ............................................................................ 5 2.1. Introduction ............................................................................................................................................................................... 5 2.2. Overview of Bangladesh infrastructure pipeline ....................................................................................................... 6 2.3. Infrastructure sub-sectors of potential interest .......................................................................................................... 7 2.4. Sources of funds for infrastructure projects ...............................................................................................................14 2.5. Role of Islamic finance in the country ......................................................................................................................... 20 2.6. Conclusion ............................................................................................................................................................................ 22 3. Overview of Bangladesh Bond Market .......................................................................................................... 24 3.1. Financial system of Bangladesh .....................................................................................................................................24 3.2. Long-term debt market in Bangladesh ....................................................................................................................... 27 3.3. Market infrastructure ...........................................................................................................................................................31 3.4. Comparison of Bangladesh Bond Market with Other Asian Countries...........................................................33 3.5. Current market procedures for issuing a bond ........................................................................................................33 3.6. Key benefits in bond issuance........................................................................................................................................36 3.7. Structural issues associated with the debt market of Bangladesh ..................................................................36 3.8. Conclusion ............................................................................................................................................................................. 37 4. Overview of Credit-Guarantee Products in Bangladesh .............................................................................. 39 4.1. Current credit guarantee schemes available in the Bangladesh financing environment ........................39 4.2. Credit assessment in Bangladesh ................................................................................................................................39 4.3. Key regulations pertaining to treatment of credit guarantee products ......................................................... 40 4.4. Key licensee requirements if an entity plans to set up operations to provide such products................42 4.5. Conclusion .............................................................................................................................................................................42 5. Market Perspective .......................................................................................................................................... 44 5.1. Introduction .............................................................................................................................................................................45 5.2. Key findings ...........................................................................................................................................................................45 6. Conclusion ........................................................................................................................................................ 52 Appendix A: Infrastructure Sectors in Bangladesh........................................................................................... 57 A.1. Affordable Housing ............................................................................................................................................................. 57 A.2. Airports.....................................................................................................................................................................................61 A.3. Logistics ..................................................................................................................................................................................63 A.4. Manufacturing ...................................................................................................................................................................... 67 A.5. Ports .........................................................................................................................................................................................70 A.6. Power....................................................................................................................................................................................... 72 A.7. Railways ................................................................................................................................................................................. 80 A.8. Roads and Highways........................................................................................................................................................ 82 A.9. Social infrastructure (Health and Education) ........................................................................................................... 85 A.10. Special Economic Zones (SEZs).................................................................................................................................. 88 A.11. Telecommunication Industry ...........................................................................................................................................91 A.12. Urban infrastructure (Water, Sanitation and Waste Management) ................................................................94 Appendix B: List of Institutions ........................................................................................................................... 97 Appendix C: References .................................................................................................................................... 100 Abbreviations Acronym Definition ACI Advanced Chemical Industries ADB Asian Development Bank ADF Asian Development Fund ADP Annual Development Plan AIIB Asian Infrastructure Investment Bank AMC Asset Management Company AMEZ Abdul Monem Economic Zone AOA Articles of Association APSCL Ashuganj Power Station Company Limited ASA Association for Social Advancement BAS Bangladesh Accounting Standards BBA Bangladesh Bridge Authority BDT Bangladeshi Taka BEPZA Bangladesh Export Processing Zones Authority BERC Bangladesh Energy Regulatory Commission BEZA Bangladesh Economic Zones Authority BFI Bilateral Financing Institutions BGTB Bangladesh Government T-Bonds BHTPA Bangladesh Hi-Tech Park Authority BI Bilateral Institutions BIBM Bangladesh Institute of Bank Management BIDA Bangladesh Investment Development Authority BIFFL Bangladesh Infrastructure Finance Fund Limited BIMB Bank Islam Malaysia Berhad BIS Bank for International Settlements BLPA Bangladesh Land Port Authority BNM Bank Negara Malaysia BOO Build-Own-Operate BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer BPDB Bangladesh Power Development
Load more

Recommended publications
  • Odhikar's Fact Finding Report/5 and 6 May 2013/Hefazate Islam, Motijheel
    Odhikar’s Fact Finding Report/5 and 6 May 2013/Hefazate Islam, Motijheel/Page-1 Summary of the incident Hefazate Islam Bangladesh, like any other non-political social and cultural organisation, claims to be a people’s platform to articulate the concerns of religious issues. According to the organisation, its aims are to take into consideration socio-economic, cultural, religious and political matters that affect values and practices of Islam. Moreover, protecting the rights of the Muslim people and promoting social dialogue to dispel prejudices that affect community harmony and relations are also their objectives. Instigated by some bloggers and activists that mobilised at the Shahbag movement, the organisation, since 19th February 2013, has been protesting against the vulgar, humiliating, insulting and provocative remarks in the social media sites and blogs against Islam, Allah and his Prophet Hazrat Mohammad (pbuh). In some cases the Prophet was portrayed as a pornographic character, which infuriated the people of all walks of life. There was a directive from the High Court to the government to take measures to prevent such blogs and defamatory comments, that not only provoke religious intolerance but jeopardise public order. This is an obligation of the government under Article 39 of the Constitution. Unfortunately the Government took no action on this. As a response to the Government’s inactions and its tacit support to the bloggers, Hefazate Islam came up with an elaborate 13 point demand and assembled peacefully to articulate their cause on 6th April 2013. Since then they have organised a series of meetings in different districts, peacefully and without any violence, despite provocations from the law enforcement agencies and armed Awami League activists.
    [Show full text]
  • Internship Report “Trade Operations of Dhaka Bank Limited-CPC”
    Internship Report on “Trade Operations of Dhaka Bank Limited-CPC” Submitted to: Dr. Suman Paul Chowdhury Assistant Professor, and Coordinator, MBA Program BRAC Business School Submitted by: Md. Neaz Hossain Department: BBS Program: BBA Student ID: 08104038 Date of Submission: 2017 Letter of Transmittal Date: 2017 Dr. Suman Paul Chowdhury Assistant Professor, and Coordinator, MBA Program BRAC Business School Subject: Submission of Internship Report Dear Sir, With due respect, I would like to inform you that I have done my internship report on Trade Operations of Dhaka Bank Limited-CPC as per your instruction. I have worked with the LC team of CPC Trade Operations for three months (from Nov 1st 2016 to Jan 31st 2017). During these three months I have learned a lot of things from the team, not only the academic requirements but also to work hard. Considering the limited time and knowledge I have gathered through work experience, I have tried to prepare an informative report explaining very basic understanding of Trade & Finance of Dhaka Bank Limited. I will be grateful if you kindly approve this effort and give me your valuable judgment upon this report. Sincerely Yours, Md. Neaz Hossain Student ID: 08104038 BRAC Business School _______________________________ Acknowledgement The number of people to whom I am grateful is way too many to count. But first, I am grateful to my Creator Allah for helping me throughout my life. Then my parents, without their love and support I wouldn’t be here. I also would like to thank all of my teachers for their effort in educating me.
    [Show full text]
  • Capital Market Development in Bangladesh* January, 2021
    Capital Market Development in Bangladesh* January, 2021 Research Department Bangladesh Bank *Prepared by Special Studies and Fiscal Affairs Division, Research Department, Bangladesh Bank (Central Bank of Bangladesh). Comments on any aspect on the report are highly welcomed and can be sent to the e-mail addresses: [email protected], [email protected] and [email protected] Capital Market Development in Bangladesh January, 2021 Capital market in Bangladesh consists of two full-fledged automated stock exchanges- the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Bangladesh Securities and Exchange Commission (BSEC), as the watchdog regulates the stock exchanges of the country. The analysis on capital market development gives some insights to understand overall activities of capital market in Bangladesh. At the end of January 2021, both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) exhibited upward trend in terms of both index and turnover compared to the end of December 2020. Total turnover value of traded shares of DSE and CSE were BDT 339.59 billion and BDT 17.28 billion respectively at the end of January 2021 which were 57.30 percent and 88.18 percent higher respectively than that of December 2020. Broad index of DSE and all share price index of CSE rose to 5649.86 points and 16474.97 points respectively at the end of January 2021 which were 5402.07 points and 15592.92 points respectively at the end of December 2020. Table : Monthly Trends in Important Indicators of DSE and CSE (BDT
    [Show full text]
  • Sustainable Urban Transport Index (SUTI) for Dhaka, Bangladesh
    Final Report on Sustainable Urban Transport Index (SUTI) for Dhaka, Bangladesh Prepared By: NOOR-E-ALAM Superintending Engineer Roads and Highways Department Dhaka, Bangladesh October 2018 Sustainable Urban Transportation Index (SUTI) for Dhaka, Bangladesh Table of Contents CHAPTER 1: INTRODUCTION .............................................................................................. 1 1.1 Introduction ................................................................................................................. 1 1.2 Study area .................................................................................................................... 1 1.3 Objectives of the study ................................................................................................ 3 CHAPTER 2: CURRENT STATE OF URBAN TRANSPORT SYSTEMS ............................ 4 2.1 Major transport network and systems ......................................................................... 4 2.2 Key connection points of DMA .................................................................................. 5 2.3 Existing transport situation of Dhaka city ................................................................... 7 2.3.1 Major transport modes of Dhaka city .................................................................. 7 2.3.2 Modal share in Dhaka city ................................................................................... 8 2.3.3 Environmental perspective ..................................................................................
    [Show full text]
  • Morning Briefings Monday, February 15, 2016
    Morning Briefings Monday, February 15, 2016 MACRO Cos must go by 36 provisos to operate container ports Private entrepreneurs seeking to obtain customs bond licence for operating private inland water container terminal (IWCT) will have to comply with a multipronged set of guidelines, including one on adequate facilities for external trade. Officials said customs wing of the National Board of Revenue (NBR) recently issued the policy with the comprehensive guidelines with some 36 conditions binding private IWCT ventures. They said the policy was framed under 'The Customs Act 1969, section 12 and section 219 (B)'. Link: http://print.thefinancialexpress-bd.com/2016/02/15/134118 Financial management strategy in the offing A new public financial management strategy is in the final stages of making as attaining fiscal discipline and its transparency now comes into government policy focus. Officials said the strategies in vogue do not fit in government planning and priorities, leading to delay in execution of projects. The one now in the making is expected to help synchronise government planning, execution of budget and modern accounting to avoid abuse of public money. The finance division has already prepared the draft. It also organised a two- day national seminar in Habiganj that ended on February 13. Link: http://print.thefinancialexpress-bd.com/2016/02/15/134116 Spl fund to back mega projects in the offing The government, for the first time, is set to create a special fund to finance its mega projects for their smooth implementation, officials said. The Ministry of Finance (MoF) will sit today (Monday) to discuss the pros and cons of creating the proposed fund.
    [Show full text]
  • Evidence from Dhaka Stock Exchange
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by International Institute for Science, Technology and Education (IISTE): E-Journals Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol 3, No 2, 2012 Cash Dividend Announcement Effect: Evidence from Dhaka Stock Exchange Md. Shehub Bin Hasan 1* Sabrina Akhter 2 Hussain Ahmed Enamul Huda 2 1. School of Business, Ahsanullah University of Science & Technology, 141-142 Love Road, Tejgaon Industrial Area, Tejgaon, Dhaka-1208, Bangladesh 2. Faculty of Business & Economics, Daffodil International University, 4/2, Sobhanbagh, Prince Plaza, Mirpur Road, Dhaka-1207, Bangladesh * E-mail of the corresponding author: [email protected] Abstract The sole motive of the paper is to investigate cash dividend announcement effect of the stocks traded in the Dhaka Stock Exchange from 2006 to 2010. Classic event study methodology was used to analyze the data. It was found that in 2006, 2007 and 2009 market has reacted over the announcement in the event date. Some sectors like Food & Auxiliary, Fuel and Miscellaneous have impacted the market both in the event and post event date across the years considered. All the efforts were given to discover reaction therefore the underlying reasoning of such impact are set aside. Keywords: Cash dividend, Dhaka stock exchange, Event study, Announcement effect 1. Introduction Securities, to be more specific stocks are not traded in a vacuum, rather amidst the complex interaction of many variables – some explainable and some not manageable. Thousands, perhaps even more variables can exert influence over stock price and dividend isthe prime variable.
    [Show full text]
  • The Role of Islami Bank Bangladesh Limited in Economic Development of Bangladesh
    ISSN: 2308-5096(P) ISSN 2311-620X (O) [International Journal of Ethics in Social Sciences Vol.4, No. 1, June 2016] The Role of Islami Bank Bangladesh Limited in Economic Development of Bangladesh Mohammed Mahbubur Rahaman1 Md. Rafiqul Islam Rafiq2 Abstract The main objective of the study is to analyze the role of IBBL in economic development of Bangladesh and to give some suggestions to overcome the challenges Islami Bank Bangladesh Ltd. (IBBL) is the pioneer of Islamic banking in Bangladesh. IBBL is performing a significant role in the development of the country. The Bank is working in the export sector from the very beginning resulting in maximizing export earnings as well as creating employment opportunities in Bangladesh. The Bank has already emerged as the top export-import bank in Bangladesh. IBBL satisfies most of the efficiency conditions if they can operate as a sole system in an economy. Conventional banking, on the other hand, does not satisfy any of the efficiency conditions analyzed in the present study. However, when Islamic banks start operation within the conventional banking framework, their efficiency goes on decreasing in a number of dimensions. 1. Introduction In a modern economy, banks are the fundamental financial intermediary. Recently they are engaged in value generating activities by assuring uninterrupted supply of financial resources and also help accelerate the pace of development process. In terms of deposit collection, investment, and foreign exchange business the Islami Bank Bangladesh Limited (IBBL) place the position of being the leading other banks, IBBL has been continuously operating their banking activities and to provide efficient banking service with a view to accelerate 1.
    [Show full text]
  • Bangladesh: Gender Equality Diagnostic of Selected Sectors
    Bangladesh Gender Equality Diagnostic of Selected Sectors Over the last 2 decades, Bangladesh has made progress in women’s participation in the labor force, gender parity in primary education, and women’s political representation. Areas of concern include the high prevalence of violence against women, obstacles to women’s access to resources and assets, unequal terms of their labor engagement, and impact of their overwhelming responsibility for care work. The Government of Bangladesh has made policy commitments toward gender equality and established an institutional framework to fulfill these. This publication intends to support the government in its attempt to address persisting gender inequalities and gaps through a multisector approach across policies, programs, and projects. It provides insights into gender issues in urban; transport; energy; and skills, vocational, and tertiary education, and gives suggestions for strengthening gender mainstreaming in projects. About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to a large share of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are
    [Show full text]
  • “E-Business and on Line Banking in Bangladesh: an Analysis”
    “E-Business and on line banking in Bangladesh: an Analysis” AUTHORS Muhammad Mahboob Ali ARTICLE INFO Muhammad Mahboob Ali (2010). E-Business and on line banking in Bangladesh: an Analysis. Banks and Bank Systems, 5(2-1) RELEASED ON Wednesday, 07 July 2010 JOURNAL "Banks and Bank Systems" FOUNDER LLC “Consulting Publishing Company “Business Perspectives” NUMBER OF REFERENCES NUMBER OF FIGURES NUMBER OF TABLES 0 0 0 © The author(s) 2021. This publication is an open access article. businessperspectives.org Banks and Bank Systems, Volume 5, Issue 2, 2010 Muhammad Mahboob Ali (Bangladesh) E-business and on-line banking in Bangladesh: an analysis Abstract E-business has created tremendous opportunity all over the globe. On-line banking can act as a complementary factor of e-business. Bangladesh Bank has recently argued to introduce automated clearing house system. This pushed up- ward transition from the manual banking system to the on-line banking system. The study has been undertaken to ob- serve present status of the e-business and as its complementary factor on-line banking system in Bangladesh. The arti- cle analyzes the data collected from Bangladeshi banks up to February 2010 and also used snowball sampling tech- niques to gather answer from the five hundred respondents who have already been using on-line banking system on the basis of a questionnaire which was prepared for this study purpose. The study found that dealing officials of the banks are not well conversant about their desk work. The author observed that the country can benefit from successful utiliza- tion of e-business as this will help to enhance productivity.
    [Show full text]
  • Flood Risk Management in Dhaka a Case for Eco-Engineering
    Public Disclosure Authorized Flood Risk Management in Dhaka A Case for Eco-Engineering Public Disclosure Authorized Approaches and Institutional Reform Public Disclosure Authorized People’s Republic of Bangladesh Public Disclosure Authorized • III contents Acknowledgements VII Acronyms and abbreviations IX Executive Summary X 1 · Introduction 2 Objective 6 Approach 8 Process 9 Organization of the report 9 2 · Understanding Flood Risk in Greater Dhaka 10 disclaimer Demographic changes 13 This volume is a product of the staff of the International Bank for River systems 13 Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily Monsoonal rain and intense short-duration rainfall 17 reflect the views of the Executive Directors of The World Bank or the Major flood events and underlying factors 20 governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and Topography, soil, and land use 20 other information shown on any map in this work do not imply any judgment Decline of groundwater levels in Dhaka on the part of The World Bank concerning the legal status of any territory or the 27 endorsement or acceptance of such boundaries. Impact of climate vulnerability on flood hazards in Dhaka 28 copyright statement Flood vulnerability and poverty 29 The material in this publication is copyrighted. Copying and/or transmitting Summary 33 portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to 3 · Public Sector Responses to Flood Risk: A Historical Perspective 34 reproduce portions of the work promptly.
    [Show full text]
  • Download File
    Cover and section photo credits Cover Photo: “Untitled” by Nurus Salam is licensed under CC BY-SA 2.0 (Shangu River, Bangladesh). https://www.flickr.com/photos/nurus_salam_aupi/5636388590 Country Overview Section Photo: “village boy rowing a boat” by Nasir Khan is licensed under CC BY-SA 2.0. https://www.flickr.com/photos/nasir-khan/7905217802 Disaster Overview Section Photo: Bangladesh firefighters train on collaborative search and rescue operations with the Bangladesh Armed Forces Division at the 2013 Pacific Resilience Disaster Response Exercise & Exchange (DREE) in Dhaka, Bangladesh. https://www.flickr.com/photos/oregonmildep/11856561605 Organizational Structure for Disaster Management Section Photo: “IMG_1313” Oregon National Guard. State Partnership Program. Photo by CW3 Devin Wickenhagen is licensed under CC BY 2.0. https://www.flickr.com/photos/oregonmildep/14573679193 Infrastructure Section Photo: “River scene in Bangladesh, 2008 Photo: AusAID” Department of Foreign Affairs and Trade (DFAT) is licensed under CC BY 2.0. https://www.flickr.com/photos/dfataustralianaid/10717349593/ Health Section Photo: “Arsenic safe village-woman at handpump” by REACH: Improving water security for the poor is licensed under CC BY 2.0. https://www.flickr.com/photos/reachwater/18269723728 Women, Peace, and Security Section Photo: “Taroni’s wife, Baby Shikari” USAID Bangladesh photo by Morgana Wingard. https://www.flickr.com/photos/usaid_bangladesh/27833327015/ Conclusion Section Photo: “A fisherman and the crow” by Adnan Islam is licensed under CC BY 2.0. Dhaka, Bangladesh. https://www.flickr.com/photos/adnanbangladesh/543688968 Appendices Section Photo: “Water Works Road” in Dhaka, Bangladesh by David Stanley is licensed under CC BY 2.0.
    [Show full text]
  • Independent Auditor's Report and Audited Consolidated & Separate Financial Statements for the Year Ended 31 December 2016
    Dhaka Bank Limited and its subsidiaries Independent Auditor's Report and Audited Consolidated & Separate Financial Statements For the year ended 31 December 2016 BDBL Bhaban (Level -13 & 14), 12 Kawran Bazar Commercial Area, Dhaka - 1215, Bangladesh. ACNABIN Cbartered Accowntants BDBL Bhaban (Level-13 & 14) Telephone: (88 02) 81.44347 ro 52 1.2 Kawran Bazar Commercial Area (88 02) 8189428 to 29 Dhaka-121.5, Bangladesh. Facsimile: (88 02) 8144353 e-mail: <[email protected]> Web: www.acnabin.com INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF DHAKA BANK LIMITED Report on the Financial Statements We have audited the accompanying consolidated financial statements of Dhaka Bank Limited and its subsidiaries namely Dhaka Bank Securities Limited and Dhaka Bank Investment Limited ("the Group") as well as the separate financial statements of Dhaka Bank Limited ("the Bank"), which comprise the consolidated balance sheet of the Group and the separate balance sheet as at 31" December 2016 and the consolidated and separate profit and loss accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flow statements for the year then ended and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements and Internal Controls Management is responsible for the preparation of consolidated financial statements of the Group and also the separate financial statements of the Bank that give a true and fair view in accordance with Bangladesh
    [Show full text]