Dhaka, Bangladesh (BBN)

“Most of banks were showing interest to invest their excess funds in the risk free securities for minimizing investment risk,” a market insider said while explanting latest situation on the market.

The cut off yield, generally known as interest rate, on the BGTBs came down to 12.25 per cent on the day from 12.30 per cent earlier, according to the auction results.

The government borrowed BDT 35 billion through issuing the treasury bonds on the day to meet its budget deficit partly.

Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.

Besides, four treasury bills (T-bills) are transacted through auction to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.

BBN/SSR/AD

Dhaka, Bangladesh (BBN)

The cut off yield, generally known as interest rate, on the 15-Year BGTBs rose to 12.70 per cent on Tuesday from 12.65 per cent earlier while the yield on the 20-Year BGTBs reached at 12.80 per cent from 12.75 per cent.

The government borrowed nearly BDT 20.08 billion instead of BDT 40 billion pre-auction target through issuing the treasury bonds on the day to partially meet its budget deficit, according to the auction result.

“A few number of banks did not participate in the auction as the two-types of bonds were re-issuing that duration risk was higher,” a market insider explained.

Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.

On the other hand, four T-bills are transacted through auction to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.

Dhaka, Bangladesh (BBN)

The cut off yield, generally known as interest rate, on the BGTBs rose to 12.55 per cent on the day from 12.15 per cent earlier, according to the auction results.

The government borrowed more than BDT 11.75 billion instead of the pre-auction targeted BDT 30 billion through issuing the treasury bonds on the day to meet its budget deficit partly.

Currently, five government treasury bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.

Besides, four treasury bills (T-bills) are transacted through auction to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.

BBN/SSR/AD

Dhaka, Bangladesh (BBN)

The government’s net borrowing through selling of NSCs dropped by more than 71 per cent to BDT 144.28 billion in FY ’20 from BDT 499.39 billion a year ago, according to the latest official figures.

The Ministry of Finance earlier slashed net borrowing target of the NSCs by nearly 56 per cent or BDT 150.76 billion to BDT 119.24 billion from the original target of BDT 270 billion for the outgoing fiscal year.

On the other hand, the government’s net borrowing through selling of NSCs stood at BDT 144.28 billion in FY ’20 which was 21 per cent or BDT 25.04 billion higher than the revised target at BDT 119.24 billion.

The net sale of government saving instruments had dropped significantly in FY ’20 compared with the previous year due mainly to the automation of the selling process and submission of tax identification number (TIN) certificate, according to officials.

The sales of NSCs normally increase during the May-June period of each fiscal year as taxpayers want to get income tax benefit, they added.

The net sales, however, rebounded in June with standing at BDT 34.17 billion, rising from BDT 32.08 billion a year ago.
The government has already set its borrowing target from the savings instruments at BDT 200 billion to meet budget deficit partly for FY ‘21.

The government has already installed an online database under the Public Expenditure Management Strengthening Programme to see whether the savings opportunity is abused by savers exceeding the investment limit or making 'benami' (fictitious) investments.

Under the programme, the savers will require to produce national identity cards, bank accounts, mobile numbers and tax-identification numbers while purchasing the national savings certificates and bonds.

Even those who have already invested in the savings certificates and bonds will need to submit the similar documents to draw yields or encash matured investments.

Besides, the savers will be required to make payment in cheque for purchasing saving certificates of over BDT 50,000.

BBN/SSR/AD

Dhaka, Bangladesh (BBN)

The turnover rose by BDT 63 million to BDT 7.13 billion in May 2018 from BDT 6.50 billion in the previous month, according to the central bank’s latest statistics.

In April, the turnover was a more-than-four-time fall from that in March, when the amount was BDT 27.78 billion.

“The turnover of the securities dropped significantly in the market mainly due to non-availability of the government-approved securities,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.

He also said the turnover of the securities may increase in the coming months as the government is set to borrow more from the banking system this month to finance budget deficit partly.

Commercial banks and non-banking financial institutions (NBFIs) are the main buyers of these fixed income government securities.

T-bills are short-term and Bangladesh Government Treasury Bonds (BGTBs) are long-term.

The secondary trading of T-bills and BGTBs in the first 11 months of the current fiscal year (FY) 2017-18 stood at BDT 152.11 billion, the BB data showed.

In the same period of the FY 17, the turnover was BDT 366.54 billion, which means the trading in monetary terms fell by 58.50 per cent during July-May period of this fiscal.

Currently, four T-bills are being transacted through auctions to adjust the government’s borrowings from the banking system.

The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.

The T-bills are short-term investment tools issued through auctions, conducted by the central bank on behalf of the government.

Five government bonds, with the tenures of two, five, 10, 15 and 20 years respectively, are also traded in the market.

BBN/SSR/AD

Dhaka, Bangladesh (BBN)- The Bangladesh Securities and Exchange Commission (BSEC) has allowed Rupali Bank and Mercantile Bank to float unsecured subordinated bonds worth BDT 9.0 billion in total.

The capital market regulator gave the approval in a commission meeting presided over by its chairman M Khairul Hossain.

As per the BSEC approval, Rupali Bank will float unsecured subordinated floating rate bond worth BDT 6.0 billion and Mercantile Bank will also issue bond worth BDT 3.0 billion.

The face value of each unit of Rupali Bank’s bond will be BDT 10 million each while Mercantile Bank’s bond will be BDT 1.0 million each.

The bonds to be issued by the two banks will be fully redeemable in seven years.

Only corporate bodies, financial institutions, eligible investors and high net worth individuals will be allowed to subscribe the bonds through the private placement.

The banks will fulfill the requirement for Tier II Capital Base by raising capital through the bond issue.
Green Delta Insurance Company is the trustee of both of the banks’ bonds.

BBN/SSR/SR

Dhaka, Bangladesh (BBN)- The state-run Investment Corporation of Bangladesh (ICB), which is one of the largest investors in the capital market, decided to issue a subordinated bond worth BDT 20 billion.

“The board of directors of Investment Corporation of Bangladesh has decided to issue ICB Subordinated Bond of BDT 20 billion for 7 years, including 2 years grace period (redeemable),” said a statement posted on the Dhaka Stock Exchange (DSE) website on Sunday.

However, the bond issue is subject to the approval of Bangladesh Securities and Exchange Commission (BSEC) and the others regulatory authorities, the disclosure said.

Some of the core features of the bond are as follows: the name of the bond is ICB Subordinated Bond, Issuer: Investment Corporation of Bangladesh (ICB), Fund Size: Tk 20 billion, the type of the bond is coupon bearing, non-convertible redeemable and subordinated.

Mode of Placement: Private Placement, Listing Status: Non-Listed, Face Value & issue Value per unit: BDT10 million only. Minimum Subscription: For Individual: 1 Bond valuing BDT 10 million only and for institution: 5 Bonds valuing BDT 50 million only.

Late Redemption Interest: Extra 2.0 percent (Yearly Basis), Bond Duration: 7 Years (including first 2 years grace period).

Interest Rate: 9.0 percent (Yearly Basis), Interest Payment: 6 Months Basis, Income Tax: Source Tax will be deducted, Transfer: Transferrable.

Each share of the state-run company, which was listed on the Dhaka bourse in 1977, closed at BDT 144.60 on Thursday last.

The company disbursed 30 per cent cash and 5.0 percent stock dividend for the year ended on June 30, 2017.
ICB’s paid-up capital is BDT 6.64 billion and authorised is BDT 10 billion. Its total number of securities is 664.45 million.

The sponsor-directors own 69.81 percent stake in the company, while the government owns 27 percent, institutional investors 1.44 percent and the general public 1.75 percent as on February 28, 2018, the DSE record shows.

BBN/SSR/SR

Dhaka, Bangladesh (BBN)- Bangladesh’s capital market regulator has allowed raising capital through issuance of non-convertible subordinated bond of two private commercial banks (PCBs) amounting to BDT 5.0 billion each.

The banks are Dhaka Bank Limited and Jamuna Bank Limited.

The approval came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) presided over by its chairman Prof. M Khairul Hossain in Dhaka on Wednesday.

As per the BSEC approval, the Dhaka Bank will issue non-convertible floating rate subordinated bond amounting to BDT 5.0 billion.

The purpose of the issue is to strengthen the capital base of the company.

The tenure of the non-convertible subordinated bond of Dhaka Bank will be seven years. Per unit of the bond will be BDT 1.0 million.

The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals through private placements “other than existing” shareholders of the company in cash consideration.

On Wednesday’s meeting, the BSEC also allowed Jamuna Bank’s non-convertible coupon bearing subordinated bond worth BDT 5.0 billion.

The Jamuna Bank will issue non-convertible coupon bearing subordinated bond worth BDT 5.0 billion to strengthen the capital base and meet capital requirement under Tier-II only through private placement, subject to the approval from Bangladesh Bank.

The purpose of the proposed bond is to strengthen the capital base of the Bank.

Characteristics of the Jamuna Bank bond is non- convertible, fully redeemable, coupon bearing, unsecured, unlisted, subordinated.

The tenure of the bond will be seven years. Per unit price of the bond will be BDT 10 million.

The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, and high net worth individuals through private placements.

BBN/SSR/SR

Dhaka, Bangladesh (BBN) -

Core features of the bond are: its value per unit is BDT 10 million, minimum application is BDT 10 million only, profit rate policy is six monthly Mudaraba Term Deposit Profit Rate of SIBL + 2.0 percent, redemption policy is 20 percent of the total bond value to be redeemed at the end of each year starting from year 3, payment of profit is semi-annually, fund placement structure is private placement and listing status is un-listed.

However, the bond issue is subject to the approval of Bangladesh Securities & Exchange Commission (BSEC) and Bangladesh Bank (BB).

The bank which was listed on the Dhaka bourse in 2000, disbursed 20 percent cash dividend for the year ended on December 2016.

Each share of the bank closed at BDT 24 each on Monday at the Dhaka Stock Exchange (DSE).

The company’s paid-up capital is BDT 7.38 billion and authorised capital is BDT 10 billion, while the total number of securities is 738.29 million.

Sponsor-directors own 38.35 percent stake in the company while the institutional investors own 46.38 percent, foreign 1.43 percent and the general public 13.84 percent as on October 31, 2017, the DSE data shows.

BBN/SS/AD

Dhaka, Bangladesh (BBN) -

The board of directors has taken the decision to raise the Tier-II capital of the Bank under Basel-III through issuance of 7 years non-convertible IBBL Mudaraba Redeemable Subordinated Bond, , said an official disclosure on Thursday.

However, the issuance of bond is subject to the approval of Bangladesh Bank (BB) and the Bangladesh Securities and Exchange Commission (BSEC), the disclosure added.

Each share of the bank, which was listed on the Dhaka bourse in 1985, closed at BDT 33.70 on Wednesday at DSE.

The bank disbursed only 10 percent cash dividend for the year ended on December 31, 2017, after massive reshuffle in the bank top positions in early January this year.

Changes have been made to the posts of the banks chairman, managing director, heads of various committees and chief of the Islami Bank Foundation in line with a decision at the bank board meeting on January 5.

The banks third quarter (Q3) consolidated earnings per share (EPS) stood at BDT 0.31 for the July-September period of 2017 as against BDT 0.46 for the same period a year ago.

The banks paid-up capital is BDT 16.10 billion and authorised capital is BDT 20 billion, while the total number of securities is 1.60 billion.

The sponsor-directors own 44.55 percent stake in Islami Bank, while institutional investors own 5.15 percent, foreign investors 32.28 percent and the general public 18.02 percent as on October 31, 2017, the DSE data shows.

BBN/SS/AD