DSE holds out hope for capital market stimulus in final budget
The Dhaka Stock Exchange (DSE) seeks tax exemption on both investments in all kinds of debt securities, including Sukuk, and on the interest income from those to stimulate the bond market. At present, such benefit is limited to zero coupon bonds. Highlighting the insignificant size of the existin
DSE chairman not disappointed with budget
Lower exports shrink Sonali Aansh's profit by 83% in March quarter
A rumour that wiped out last week's gains in a day
Dhaka stocks experience sharpest selloff this year
Premier Bank Declares 10% half-yearly coupon rate for perpetual bond
International Leasing’s losses decrease in 2022
Sonali Aansh net profit drops 83% in Jan- Mar
STOCKS
Intraco Refueling conditionally allowed to issue Tk50cr bond
Economy
RMG export income rises, raw material imports fall in Q1
June 6, 2023
· The country's garment exports amounted to USD 12.25 bn in the first quarter of this year, while the raw material imports for that sector during the same period were USD 3.54 bn, according to Bangladesh Bank data.
· Value addition during this period was USD 8.70 bn or 71%, which was the highest ever in the country's history.
· Considering the garment raw material imports in the October-December quarter of 2022 and the export earnings in January-March quarter this year, the value addition in this sector was USD 8.14 bn or 70%, which was very high.
From: https://www.tbsnews.net/economy/rmg-export-income-rises-raw-material-imports-fall-q1-645218
Net FDI inflow drops in Q4
June 6, 2023
· The net foreign direct investment in Bangladesh declined to USD 703 mn in the October-December period of 2022 compared with that of USD 1,092 mn in the same period of 2021, according to Bangladesh Bank data.
· The July-September 2022 quarter saw the net FDI at USD 1,100 mn.
· Businesses said that the FDI declined due to the current global economic crisis and a continued surge in the US federal rate.
· Global inflation, supply chain disruptions and the Russia-Ukraine war might also disrupt the FDI growth, they said.
· They said that the ongoing pressure on the country’s macroeconomic situation provoked foreign investors to search for other options.
· They said soaring business costs due to a hike in power and energy price, a significant devaluation of the local currency taka could be a heavy drag on the FDI inflow.
· The country’s net FDI inflows, however, increased by USD 584.39 mn, or 20.2 per cent, to USD 3,480 mn in the year 2022 compared with that in the year 2021.
· The increase in the net FDI inflows in 2022 was due mainly an increase in reinvested earnings (net) by USD 952.70 mn (or 61.0 per cent), but equity capital (net) decreased by USD 116.07 mn and intra-company loans decreased by USD 252.24 mn.
· The highest FDI came from the United Kingdom (USD 560 mn) followed by the United States USD 354 mn, Republic of Korea USD 312 mn, the Netherlands USD 303 mn and Singapore USD 269 mn in 2022.
From: https://www.newagebd.net/article/203561/net-fdi-inflow-drops-in-q4
Ecnec clears 18 projects with estimated cost of BDT 11,388 cr
June 5, 2023
· The Executive Committee of National Economic Council (Ecnec) today approved a total of 18 development projects with the overall estimated cost of BDT 113.88 bn.
· The approval came from the Ecnec meeting presided over by Ecnec chairperson and Prime Minister Sheikh Hasina.
· "Today 18 projects were approved. The overall estimated cost of the projects is BDT 113.88 bn (only additional cost of the revised projects were counted here)," said Planning Minister MA Mannan at a press briefing after the meeting at the NEC conference room in the city's Sher-e Bangla Nagar area.
· Of the cost, the government of Bangladesh will finance BDT 74.45 bn, while BDT 38.62 bn will come from the foreign sources and the rest of the BDT 807.8 mn from the funds of the organisation concerned, he said.
· Of the approved projects, nine are new and the rest are revised projects.
Banking
Digital bank licence requires BDT 1,250 mn capital
June 6, 2023
· The Bangladesh Bank has set the minimum capital requirement for a digital bank at BDT 1,250 mn, a new banking concept in the country, when a conventional bank requires BDT 5,000 mn to get the licence.
· A digital bank will be governed by the Banking Company Act, according to a guideline the Bangladesh Bank has finalised for placing in the next board meeting scheduled next week.
· The minimum shareholding of each sponsor will be BDT 5 mn (maximum 10% or BDT 1,250 mn), the guideline says.
· A sponsor of a conventional bank needs to invest a minimum of BDT 100 mn to hold a minimum 2% shareholding, according to the bank company act.
· The less capital requirement makes it easier for sponsors to get a stake in digital banks than conventional banks.
· The Bangladesh Bank in its draft guideline encouraged fintech companies, tech firms, microfinance institutions, mobile financial service-providers, banks and financial institutions to come into joint ventures for setting up digital banks.
· "The ceiling of 10%, in consultation with the government, may be relaxed in case of a digital bank formed as a joint venture of banks, financial institutes, microfinance institutions, MFS providers, fintech companies and technology firms or for a needed special case," reads the guideline.
· A digital bank must go for an initial public offering (IPO) within five years from the date of the licence issuance by the central bank and the IPO amount should be minimum to the sponsor's initial contribution.
From: https://www.tbsnews.net/economy/banking/digital-bank-licence-requires-tk125cr-capital-645230
note: this post is for research and analysis only