Dhaka, Bangladesh (BBN)- the government appointed Transaction Execution Committee (TEC) started working to complete necessary internal formalities by March for issuance of ‘sovereign bonds' worth US$ 500 million in the global market, officials said.
The committee will prepare a strategy paper detailing different aspects, including fixation of commissions and fees for the selected book runner or lead manager and the tenure of the proposed bonds,.
The decision was made in the first meeting of the eight-member body at the central bank in the capital Dhaka in the last week with TEC Chairman and Bangladesh Bank Deputy Governor SK Sur Chowdhury in the chair.
The TEC has also decided to co-opt two members—one from the central bank and another from the Ministry of Finance (MoF)—to complete the assignment within the stipulated timeframe by speeding up its activities.
“The TEC is now working to complete all internal preparation by March next before issuing the bonds,” a member of the committee told BBN in Dhaka, adding that the TEC would recommend to the BB the appointment of a book runner or lead manager for the bonds.
The lead manager would facilitate issuance of the bonds in compliance with the global practices, the committee member said, adding that the TEC would conduct the transaction settlement after issuance of the bonds.
The committee member also said the TEC is now analysing the existing rules and regulations for appointing the lead manager or book runner and prepare the expression of interest (EoI) for this purpose.
Finance Minister AMA Muhith earlier approved formation of the high-powered TEC under a five-point term of reference (ToR).
Under the ToR, the TEC will shortlist the potential bidders to be appointed as a lead manager or book runner and recommend their positions to the central bank for a final decision.
The TEC will prepare all related documents necessary for issuance of bonds, organise road shows and hold consultations with potential investors, according to the ToR.
The government earlier decided to issue the bonds aiming to finance some priority projects meant for purposes including infrastructure development in the country.
BBN/SSR/AD-24Jan13-2:15 pm (BST)
