Bangladesh eyes debut sovereign bond in three months

Detailed summary

The government plans to issue a sovereign bond for the first time within the next three months, seeking to diversify its sources of financing, Tanvir Shahriar Ghani, special…

The government plans to issue a sovereign bond for the first time within the next three months, seeking to diversify its sources of financing, Tanvir Shahriar Ghani, special assistant to the prime minister, said today.

He disclosed the plan while speaking to journalists on the sidelines of a two-day international debt conference jointly organised by the finance ministry and the Asian Development Bank (ADB) in Cox’s Bazar.

“We intend to enter the market within the next two to three months,” he said.

Tanvir said the issuance could take place in either New York or London, adding that the size of the bond would be decided later.

Speaking to reporters at the event, Finance Minister Amir Khosru Mahmud Chowdhury stressed the need to diversify Bangladesh’s borrowing sources beyond traditional lenders.

Domestic debt instruments alone would not meet the country’s foreign currency requirements for development projects, he said.

“If we only issue local bonds, we still have to turn to the international market whenever we need foreign currency for development.

“We must move towards alternative financing. Rather than relying solely on multilateral lenders or bilateral sources for loans, we will tap into alternative financing.”

Khosru outlined several financing instruments in the pipeline to mobilise both foreign and domestic capital.

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