Bangladesh to Issue Maiden Sovereign Bond Amid Global Borrowing Costs

Bangladesh is planning to raise between $500 million and $1 billion through its debut foreign-currency sovereign bond sale, set to take place within the next three months. The debt sale will be managed by JPMorgan Chase & Co., according to Tanvir Shahriar Ghani, special assistant to the prime minister for investment and capital market affairs. This move comes as developing nations face higher global borrowing costs following recent rate hikes by the US Federal Reserve. To navigate this backdrop, Dhaka will be cautious about pricing, said Ghani, who heads the government's bond issuance committee.

The interest rates have gone up by 25 basis points, which will have an impact on emerging market rates, Ghani explained. The government is balancing its financing needs while remaining 'sensitive to the cost of capital.'

Appetite for the country's debut global debt offering appears robust following unofficial meetings with institutional investors in Europe last week. The interest level is extremely high for sovereign bonds, according to Ghani.