Dhaka, Bangladesh (BBN)– The Transaction Execution Committee (TEC) is going to submit an interim report to the Ministry of Finance (MoF) on April 10 for issuance of sovereign bond in the global market, officials said.

“We’re taking preparations to float sovereign bond as early as possible,” TEC Chairman and Bangladesh Bank (BB) Deputy Governor SK Sur Chowdhury said on Tuesday after a power- point presentation of the bond. 

Dr. Hamid Rashid, Senior Advisor for Macroeconomic Policy in the United Nations Department for Economic and Social Affairs, made the presentation at a meeting with senior officials of the BB and members of the TEC in the central bank on Tuesday. 

The visiting UN expert highlighted various aspects of sovereign bond, issued by different countries including Sri Lanka, Indonesia and Thailand, according to a senior member of the TEC.

He also said the TEC earlier sought cooperation from the UN in floating the bond properly.

“We’re now working to prepare the interim report in line with its terms of reference (ToR),” the TEC member said, adding that TEC will act in line with the government’s decision after review of the interim report.

The ministry earlier approved the nine-member high-powered TEC under a five-point 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 BB 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 lead manager would facilitate issuance of the bonds in tune with the global practices, the committee member said. The TEC would conduct transaction settlement after issuance of the bond, he added.

The government earlier decided to issue the bonds aiming to finance some priority projects meant for purposes including infrastructure development in the country.

On Sunday last, Finance Minister AMA Muhith said the government will float ‘sovereign bond’ by June this year for various purposes, including construction of the Padma Bridge project with domestic resources

“It (sovereign bond) can raise one billion dollars in two years. But the money must be used properly… the Padma Bridge must be the best project for this,” he said. 

BBN/SSR/AD-03Apr13-11:30 am (BST)