Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has given two non-banking financial institutions (NBFIs) permission to float two zero-coupon bonds aiming to raise their flow of funds for investment.
"The central bank has given permissions on issuance of two zero-coupon bonds to two financial institutions aiming to expand their window for investment," a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.
The BB is very much positive on the permission issue for floating such bonds. "But the organizations seeking to issue bonds must fulfill our requirements," the BB official added.
The central bank has given permission to the Uttara Finance and Investment Limited for floating zero-coupon bond worth Tk 2.0 billion while the United Leasing Company Limited has already obtained permission from the central bank to issue such bond worth Tk 500 million, according to the BB officials.
Currently, there are six zero-coupon bonds and one asset-backed zero-coupon bond, issued by five NBFIs.
The central bank has already introduced guidelines on mortgaged-backed securities (MBS) market in Bangladesh aiming to bring dynamism in the country's bond market.
"The overall bond and securitization market in Bangladesh has not yet flourished significantly. Specially, the concept of 'mortgaged-backed securities market' is quite new," the central bank said in its guideline, issued earlier.
BBN/SI/SSR/AD-25October08-10:41 PM (BST)