Bangladesh Set to Launch Maiden Sovereign Bond Sale Amid Rising Global Borrowing Costs

Bangladesh is preparing to issue its first sovereign bond in a bid to raise between $500 million and $1 billion in the next three months.

The country's government, led by Prime Minister Tarique Rahman, has given final approval for the bond sale plan, which will be managed by JPMorgan Chase & Co.

Tanvir Shahriar Ghani, special assistant to the prime minister for investment and capital market affairs, noted that the global borrowing costs have increased following recent rate hikes by the US Federal Reserve, which may impact emerging market rates.

Ghani emphasized that the government is being cautious about pricing due to the higher interest rates, saying 'The interest rates have gone up by 25 basis points, which will have an impact on emerging market rates. We are just going to be cautious about what the pricing is, and based on that we will proceed.'

The country's central bank had first floated the idea of issuing debt to foreign investors in 2012 but it never materialized.