DOCSLIB.ORG

Progress Report on Tranche Release Bangladesh: Third Capital Market

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Progress Report on Tranche Release Bangladesh: Third Capital Market Progress Report on Tranche Release Project Number: 45253–002 Loan Number: 3318/3319 January 2020 Bangladesh: Third Capital Market Development Program (Second Tranche) Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB’s Access to Information Policy. CURRENCY EQUIVALENTS (as of 06 January 2020) Currency unit – taka (Tk) Tk1.00 = $0.01179 $1.00 = Tk84.780 ABBREVIATIONS ADB – Asian Development Bank BSEC – Bangladesh Securities and Exchange Commission CCP – central counterparty CDMC – Cash and Debt Management Committee CMDP – Capital Market Development Program CMT – Capital Market Tribunal CSE – Chittagong Stock Exchange DSE – Dhaka Stock Exchange FRC – Financial Reporting Council FRTB – floating rate treasury bond GDP – gross domestic product IAD – Internal Audit Department ICT – information and communication technology IDRA – Insurance Development and Regulatory Authority IPO – initial public offering NSC – national saving certificate TA – technical assistance NOTE (i) The fiscal year (FY) of the Government of Bangladesh and its agencies ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2019 ended on 30 June 2019. (ii) In this report, “$” refers to United States dollars. Vice-President Shixin Chen, Operations 1 Director General Hun Kim, South Asia Department (SARD) Director Takeo Konishi, Public Management, Financial Sector and Trade Division, SARD Team leader Takuya Hoshino, Financial Sector Specialist, SARD Team members Monica Mei Carino-Young, Project Analyst, SARD M. M. Zimran Khan, Associate Project Analyst, SARD Jackie Moreno, Senior Project Assistant, SARD Douglas Perkins, Principal Counsel, Office of the General Counsel Dongdong Zhang, Principal Financial Sector Specialist, SARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area CONTENTS Page I. INTRODUCTION ............................................................................................................ 1 II. RECENT MACROECONOMIC AND POLITICAL DEVELOPMENTS.............................. 2 III. STATUS OF PROGRAM IMPLEMENTATION ................................................................ 3 A. Summary of Compliance Status .......................................................................... 3 B. Program Implementation ..................................................................................... 3 C. Review of the Associated Technical Assistance .................................................10 IV. CONCLUSION ..............................................................................................................10 V. THE PRESIDENT’S RECOMMENDATION ...................................................................12 APPENDIXES 1. Country Economic Indicators 13 2. Status of Second Tranche Policy Actions 14 3. Summary of Progress Under Design and Monitoring Framework 18 4. Bangladesh Capital Market Performance 22 I. INTRODUCTION 1. On 20 November 2015, the Asian Development Bank (ADB) approved a program loan to Bangladesh totaling $250 million equivalent for the Third Capital Market Development Program (CMDP3). CMDP3 comprises (i) a program loan to support vital capital market reforms and (ii) an associated technical assistance (TA) grant of $700,000 to assist the implementation of key reform actions under the program.1 2. Capital markets are important for financial intermediation and resource mobilization, specifically for raising long-term financing and risk capital for infrastructure and entrepreneurial activities. Well-functioning capital markets can reduce the private sector’s dependency on bank financing. Bangladesh’s capital market needs to be larger, deeper, and more dynamic to encourage enough private sector investment to spur economic growth and enable the country to achieve middle-income status. The Government of Bangladesh has shown strong ownership of reforms that enable capital market development.2 Its Vision 2021 calls for capital markets to be further liberalized, reformed, and deepened to raise capital to support industry growth.3 ADB has been supporting this government-owned reform agenda through the Second Capital Market Development Program (CMDP2) and the follow-on CMDP3 since 2012. 3. CMDP2 was introduced after the turbulence in the stock market in December 2010 to regain market confidence and pull the capital market back onto a sustainable development path. The program first brought in market stabilization measures such as (i) regulations on margin lending and the equity exposure of banks; and (ii) stronger oversight by Bangladesh Bank (the banking regulator) and the Bangladesh Securities and Exchange Commission (BSEC, the securities regulator) as well as policy coordination between the two entities. Second, CMDP2 laid the foundation for sustainable market development by tackling structural deficiencies in a comprehensive and sequential manner. This resulted in a long-term national capital market master plan, with strong ownership of the government. 4 In addition, critical legislations and amendments to tax codes strengthened the policy framework for (i) new financial instruments, (ii) better corporate governance, (iii) reliable financial reporting and auditing, and (iv) stronger operational and financial efficiency of BSEC. The demutualization of the Dhaka and Chittagong stock exchanges, undertaken through a special act with time-bound action plans, aligned the broader incentives of capital market development with those of brokers and dealers. Parliament passed the Financial Reporting Act (FRA) on 6 September 2015 to set up an independent regulatory agency, the Financial Reporting Council (FRC), improve the quality of financial reporting, and upgrade accounting and auditing standards. The reform under the FRA was expected to promote more informed investment decisions based on reliable financial reports. 4. CMDP3 was introduced in 2015 to broaden and deepen the reform outreach and overcome the remaining constraints to sustainable market development. In fact, the government, 1 ADB. 2015. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the People’s Republic of Bangladesh for the Third Capital Market Development Program. Manila. 2 ADB’s first program for capital market development in Bangladesh was approved in 1997 to restore investor confidence, which was significantly damaged when the Bangladesh stock market crashed in 1996 because of excessive speculation. The program’s key achievements were: (i) strengthened market regulation and supervision, such as by strengthening regulatory authority of the Bangladesh Securities Exchange Commission; (ii) developed capital market infrastructure, including strengthened governance framework for market intermediaries, and (iii) modernized capital market support facilities, including establishment of automated depository and trading systems. 3 Government of Bangladesh, Planning Commission. 2012. Perspective Plan of Bangladesh 2010–2021. Dhaka. 4 Bangladesh Securities and Exchange Commission. 2012. Bangladesh Capital Market Development Master Plan 2012–2022. Dhaka. 2 in its 7th Five Year Plan, called for more measures to further improve the overall capital market performance with a strong emphasis on reducing malpractices and governance deficits.5 In line with the five-year plan, the government and ADB agreed to build on the stabilization measures introduced by CMDP2 and to support the timely implementation of the capital market development master plan. In particular, CMDP3 was to focus on the actual implementation of regulatory and institutional reforms mandated by the legislations introduced under CMDP2, such as demutualizing the two stock exchanges, establishing the FRC, strengthening the human resource capacity of BSEC, and operationalizing the Capital Market Tribunal (CMT). CMDP3 was considered critical in maintaining the reform momentum by continuing to take various actions and successfully delivering outputs with strong engagement by the different stakeholders. 5. The reforms under CMDP3 were implemented from January 2015 to November 2019. CMDP3 comprises an $80 million first tranche against 8 policy actions and a $170 million second tranche against 18 policy actions. The policy actions supported four program outputs: (i) strengthened market stability, (ii) enhanced market facilitation, (iii) enhanced supply measures, and (iv) enhanced demand measures. The first tranche was released upon loan effectiveness on 11 December 2015. While the release of the second and final tranche was originally expected 18 months after the first tranche (i.e., in June 2017), the program was extended to March 2020 to achieve a satisfactory fulfillment of the corresponding tranche release conditions. 6. This report focuses on the progress achieved under the second tranche. II. RECENT MACROECONOMIC AND POLITICAL DEVELOPMENTS 7. Bangladesh has experienced strong economic growth since 2015 (Appendix 1). Its average annual real gross domestic product (GDP) growth rate was 7.2% during FY2015–FY2018, and accelerated to 7.9% in FY2018, driven by higher private sector consumption, private sector investment, and exports. Continued political
Load more

Recommended publications
  • 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]
  • 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]
  • Capital Market Deregulation, Stock Returns and Volatility In
    Market Efficiency, Time-Varying Volatility and Equity Returns in Bangladesh Stock Market M. Kabir Hassan, Ph.D. University of New Orleans Anisul M. Islam, Ph.D. University of Houston-Downtown Syed Abul Basher York University Contact Author M. Kabir Hassan, Ph.D. Associate Professor of Finance Associate Chair Department of Economics and Finance University of New Orleans New Orleans, LA 70148 Phone: 504-280-6163 Fax: 504-280-6397 Email: [email protected] First Draft: December 1999 Second Draft: February, 2000 Third Draft: May, 2000 This Draft: June, 2000 Market Efficiency, Time-Varying Volatility and Equity Returns in Bangladesh Stock Market Abstract This paper empirically examines the issue of market efficiency and time-varying risk return relationship for Bangladesh, an emerging equity market in South Asia. The study utilizes a unique data set of daily stock prices and returns compiled by the authors which was not utilized in any previous study. The Dhaka Stock Exchange (DSE) equity returns show positive skewness, excess kurtosis and deviation from normality. The returns display significant serial correlation, implying stock market inefficiency. The results also show a significant relationship between conditional volatility and the stock returns, but the risk-return parameter is negative and statistically significant. While this result is not consistent with the portfolio theory, it is possible theoretically in emerging markets as investors may not demand higher risk premia if they are better able to bear risk at times of particular volatility (Glosten, Jagannathan and Runkle, 1993). While circuit breaker overall did not have any impact on stock volatility, the imposition of the lock-in period has contributed to the price discovery mechanism by reverting an overall negative risk- return time-varying relationship into a positive one.
    [Show full text]
  • Empirical Evidence from Dhaka Stock Exchange
    The Impacts of Interest Rate on Stock Market: Empirical Evidence from Dhaka Stock Exchange Md. Gazi Salah Uddin Lecturer School of Business Presidency University Dhaka, Bangladesh Email: [email protected] Md. Mahmudul Alam Officer, Operational Analysis Customer Relationship Management (CRM) Brands, Commercial Division Grameenphone Ltd. Dhaka, Bangladesh Email: [email protected] Citation Reference: Uddin, M.G.S., and Alam, M.M. 2010. The Impacts of Interest Rate on Stock Market: Empirical Evidence from Dhaka Stock Exchange, South Asian Journal of Management Sciences, Vol. 4(1), pp. 21-30. (online) http://sajms.iurc.edu.pk//paper.php?id=Spring2010V4N1P2 (ISSN 2074-2967; Publisher- Iqra University, Karachi, Pakistan) This is a pre-publication copy. The published article is copyrighted by the publisher of the journal. 0 The Impacts of Interest Rate on Stock Market: Empirical Evidence from Dhaka Stock Exchange Abstract Stock exchange and interest rate are two crucial factor of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of market efficiency on the Dhaka Stock Exchange (DSE) based on the daily general price index 1994 to 2005 and also shows empirical relationship between stock index and interest rate in Bangladesh based on monthly data from May 1992 to June 2004. Stationary of market return is tested and found DSE Index does not follow random walk model indicate DSE is not efficient in week form. The linear relationship between share price and interest rate, share price and growth of interest rate, growth of share price and interest rate, and growth of share price and growth of interest rate were determined through ordinary least-square (OLS) regression.
    [Show full text]
  • Dhaka Stock Exchange Ltd. Transforms It Infrastructure with Vmware’S Virtualized Solutions to the Delight of Brokers and Investors
    CUSTOMER CASE STUDY DHAKA STOCK EXCHANGE LTD. TRANSFORMS IT INFRASTRUCTURE WITH VMWARE’S VIRTUALIZED SOLUTIONS TO THE DELIGHT OF BROKERS AND INVESTORS VMware’s virtualization solutions have transformed Bangladesh’s Dhaka Stock Exchange Ltd. (DSE) into a highly efficient bourse, enabling it to roll out new applications to its 250 stock brokers much faster than before while minimizing downtime. Its virtualized infrastructure has also helped optimize resources, improve capacity planning, pre-empt and better plan network needs thereby lowering operational costs. Critical to the development and progress of Bangladesh’s economy, the modernization of DSE’s infrastructure ensured its reliability and scalability to support the country’s growth. Customer Profile INDUSTRY As the premier exchange of Bangladesh, DSE runs a fault-tolerant, automated FINANCIAL SERVICES trading system for transparent and highly efficient trading of securities. As of 2014, DSE facilitates the trading of 546 securities worth about US$41.6 billion. LOCATION In its 60-year history, DSE has contributed significantly to the Bangladesh BANGLADESH economy by providing a platform for companies to raise funds from the public. KEY CHALLENGES It is now in the relentless process of modernizing and upgrading its systems • Pressure to deliver applications for and facilities to take advantage of new technologies. brokers in a timely manner • Need to enhance operational The Challenge efficiency and data security With the growth in trading volume and speed over recent years alongside • Managing IT resources and Bangladesh’s progress, DSE has faced challenges in ensuring its IT identifying bottlenecks infrastructure - powered by 250 physical servers and used by brokers to execute trades - was constantly online and available.
    [Show full text]
  • Capital Market Development in Bangladesh* August, 2020
    Capital Market Development in Bangladesh* August, 2020 Research Department Bangladesh Bank *Prepared by Special Studies Division, Research Department, Bangladesh Bank (Central Bank of Bangladesh). Comments on any aspect on the report are highly welcomed and can be sent to Nazmun Nahar Mily, Deputy General Manager, Research Department, Bangladesh Bank (e-mail: [email protected]), Md. Mokhlesur Rahman, Joint Director, Research Department, Bangladesh Bank (e- mail: [email protected]) Capital Market Development in Bangladesh August, 2020 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 August 2020, 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 July 2020. Total turnover value of traded shares of DSE and CSE were BDT 186.18 billion and BDT 5.94 billion respectively at the end of August 2020 which were 210.23 percent and 70.02 percent higher respectively than that of the July 2020. Broad index of DSE and all share price index of CSE stood at 4879.15 points and 13908.14 points respectively at the end of August 2020. Table : Monthly Important Indicators of DSE and CSE
    [Show full text]
  • Capital Market Development in Bangladesh*
    Monthly Report on Capital Market Development in Bangladesh* May, 2021 Research Department Special Studies and Fiscal Affairs Division Bangladesh Bank * Comments on any aspect of the report are highly welcomed and can be sent to the e- mail address: [email protected], [email protected] and [email protected] Capital Market Highlights in May 2021 At the end of May 2021, both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) exhibited upward trend in terms of index and turnover compared to that of the end of April 2021. Broad index of DSE and all share price index of CSE rose to 5990.99 points and 17359.57 points respectively at the end of May 2021, which were 5479.62 points and 15844.80 points respectively at the end of April 2021. Total turnover value of traded shares of DSE and CSE were BDT 310.10 billion and BDT 15.46 billion respectively at the end of May 2021, which were 115.69 percent and 78.03 percent higher respectively than that of April 2021. Capital Market Development in Bangladesh: May, 2021 Research Department, Bangladesh Bank. Page 2 Capital Market Development in Bangladesh May, 2021 Capital market acts as a bridge of long term financing for the industrial development of a country through the selling and purchasing of shares, debentures, bonds, mutual funds, treasury bills, certificates etc and the turn-over of capital market contributes to the GDP of the country. Capital market in Bangladesh consists of two full-fledged automated stock exchanges- the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).
    [Show full text]
  • Collaboration Between GRI and Dhaka Stock Exchange to Drive Uptake of Sustainability Reporting in Bangladesh
    Collaboration between GRI and Dhaka Stock Exchange to drive uptake of sustainability reporting in Bangladesh About the flyer Designed for large companies and regulators in Bangladesh, this flyer aims to provide details and outline the benefits of participating in GRI and Dhaka Stock Exchange Programmes that help advance sustainability reporting and create the global common language for organisations to report on their impacts. Now more than ever, in light of the global pandemic and its impact on businesses the world over, sustainability reporting can help anticipate risks and increase resilience in the face of crisis – both present and future. Background What to expect from GRI and DSE Programmes As part of a larger effort to closely work with stock exchanges and regulators in the region and create The GRI and DSE joint Programmes are designed a conducive environment for large companies to to assist the reporters on their sustainability report on their sustainability impacts and contribute reporting journey through a series of workshops to a more sustainable trade, in 2017 GRI South Asia and sessions that cover a wide variety of reporting and Australian Government’s Department of Foreign aspects, such as identifying the most relevant topics Affairs and Trade (DFAT) renewed their cooperation for disclosure, engaging the stakeholders involved, with the Sustainable Trade and Investment Through preparing the content of the report, etc. GRI and Reporting (STIR) Programme. In what followed, an DSE Programmes include: agreement with the Dhaka Stock Exchange (DSE) • Explanatory presentation and slides was signed to sensitise companies and regulators to sustainability reporting with the world’s most • Group exercises and discussions widely used sustainability disclosure standards – • Panel discussions the GRI Standards.
    [Show full text]
  • Stock Market and Economic Growth: Bangladesh Perspective
    Stock Market and Economic Growth: Bangladesh Perspective Dr. Prashanta Kumar Banerjee Professor and Director (RD&C) Bangladesh Institute of Bank Management (BIBM) 1 I. Introduction Economic development requires a safe and sound financial system to serve as a transmission mechanism that transfers funds from savers to entrepreneurs seeking capital for productive investments (Barth et al. 2006). A large body of literature supports the positive influence of the development of a country‟s financial sector on its economic growth. Empirical findings seem consistent with this argument (Schumpeter 1912; Levine and Sarah Zervos 1998; Arestis et al. 2001). What are the transmission mechanisms of a safe and sound financial system that transfer funds from savers to entrepreneurs? Levine and Zervos (1998), Rajan and Zingales (1998), and Beck and Levine (2004) demonstrate the importance of both banks and equity markets for economic growth. Herring and Chatusripitak (2001) note that the absence of a bond market may render an economy less efficient and significantly more vulnerable to financial crisis. Moreover, Domowotz et al. (2001) find that macroeconomic stability is highly and positively correlated with the development of bond markets. Is there any predicament if financial system of a country is heavily dependent on a single source of finance particularly on bank based finance? The financial turmoil that occurred in East Asia in mid-1997 taught policy makers, academics and practitioners that excessive reliance on banks as the vehicle through which savings are channeled to investment projects significantly exacerbates economic downturn when the banking sector suffers a crisis. Park and Oh (2006) point out that one of the root causes of the financial crisis in 1997-1998 was heavy dependent on banking systems to finance domestic investment.
    [Show full text]
  • Supplementary Financial Analysis
    Rupsha 800-Megawatt Combined Cycle Power Plant Project (RRP BAN 50161) SUPPLEMENTARY FINANCIAL ANALYSIS I. INTRODUCTION AND METHODOLOGY A. Introduction 1. The financial analysis of the proposed project was carried out in accordance with the Financial Management and Analysis of Projects of the Asian Development Bank (ADB).1 The project includes (i) the construction of the Rupsha 800-megawatt (MW) gas-fired combined cycle power plant (CCPP) in Khulna, in the south-western part of Bangladesh, (ii) the construction of a gas supply pipeline and related network infrastructure; (iii) the construction of a power transmission interconnection facility to transfer power from the Rupsha power plant to the national grid, and (iv) strengthening of the institutional capacity and overall business process of the project’s executing agency, North-West Power Generation Company Limited (NWPGCL). B. Methodology 2. The financial evaluation was carried out for three components; (i) the Rupsha 800 MW gas-fired CCPP, (ii) the gas supply pipeline and related network, and (iii) the power transmission line. A financial discounted cash flow analysis was conducted on an after-tax basis in real terms to determine the weighted average cost of capital (WACC), the financial internal rate of return (FIRR), and financial net present value (FNPV) to assess the financial viability of each component. A financial analysis examined to ascertain whether the FIRR can meet the WACC calculated based on the cost of capital from different financing sources. A sensitivity analysis was then conducted to assess the tolerance of the FIRR and FNPV to adverse movements. 3. This analysis also examined the financial sustainability of NWPGCL as an executing agency.
    [Show full text]
  • Annual Report 2018
    The very fundamental and organic component of human evolution is the sense of “Togetherness”. This trait is seen across almost every living creatures in the world, regardless of species. As the consequences of our co-existence we, as Earthlings, have reached a point of excellence in various segments such as urban practices, civic establishments, peace missions, and wealth management. Today as social animals, we happen to manage our wealth using various tools including modern Banking. This year, we tried to develop a cover visual for our Annual Report, which signifies a bundled core essence of Togetherness, Bonding and Human Co-existence broadly. LETTER OF TRANSMITTAL All Shareholders of Dhaka Bank Limited Bangladesh Bank Bangladesh Securities & Exchange Commission (BSEC) Registrar of Joint Stock Companies & Firms Dhaka Stock Exchange Limited (DSE) & Chittagong Stock Exchange Limited (CSE) Dear Sir(s), Annual Report of Dhaka Bank Limited for the year ended December 31, 2018 We are pleased to enclose a copy of Annual Report along with the audited financial statements including consolidated and separate balance sheet, profit and loss account, cash flow statement, statement of changes in equity, liquidity statement for the year ended December 31, 2018 along with notes thereto of Dhaka Bank Limited (the Bank) and its subsidiaries - Dhaka Bank Securities Limited and Dhaka Bank Investment Limited for your kind information and record. We have also enclosed separate financial statements of Islamic Banking Branches and Off-Shore Banking Unit (OBU) of the Bank. Financial statements of the Bank comprise those of Conventional and Islamic Banking Branches and Off-Shore Banking Unit while consolidated financial statements comprise financial statements of the Bank and its subsidiaries.
    [Show full text]