Bangladesh Seeks Up to $1 Billion in Maiden Sovereign Bond Sale
Bangladesh plans to enter the global debt market by raising up to $1 billion through its maiden foreign-currency sovereign bond sale within the next three months. The sale will be managed by JPMorgan Chase & Co.
Tanvir Shahriar Ghani, special assistant to the prime minister for investment and capital market affairs, said that the government is being cautious about pricing due to higher global borrowing costs following recent rate hikes by the US Federal Reserve. 'The interest rates have gone up by 25 basis points, which will have an impact on emerging market rates,' he stated.
The appetite for Bangladesh's debut global debt offering appears robust after unofficial meetings with institutional investors in Europe last week. Ghani noted that the government is being sensitive to the cost of capital and is balancing its financing needs.