Goldman Sachs on Thursday expressed willingness to raise funds for Bangladesh from international bond market as the government is toying with the idea for the last several years to implement development projects amid shrinking foreign aids.
Three visiting officials of the US-based multinational investment bank expressed the willingness to become the issue manager of the bond during a meeting with finance minister AMA Muhith at his office.
The visitors assured the finance minister of raising US$ 2 to US$ 3 billion in just three months for Bangladesh that was included in a group of 11 potential fast growing economies by Goldman Sachs in 2005.
The interest rate of the bond will be minimum 7 per cent with a minimum maturity period of 5 years, said Muhith after the meeting. He said there was scope for bargaining the maturity period.
The government had taken a move to issue sovereign bond to raise US$ 500 million from the international market to implement development projects because of poor availability of soft loan from the donors in 2011.
But it backtracked from the move after a committee led by Bangladesh Bank deputy governor Shitangshu Kumar Sur Chowdhury identified the risks including appreciation of the local currency against the dollar and fall in soft loans from the donor agencies in the last year.
World Bank, Asian Development Bank and Japan International Cooperation Agency suspended around US$ 2 billion loans to Padma Bridge project in 2012 following allegation of corruption in the tender process.
Muhith told reporters that the government was yet to make any final decision on the offer by Goldman Sachs which could open avenues for implementing mega projects in transport and power sectors.
He said the government was again planning to raise funds from the international market this year after the decision of constructing the Padma Bridge with own fund.
He pointed out that they needed foreign currency as the existing reserve of foreign currency could back up the country’s import for seven months.
The prime minister’s economic and energy advisers – Mashiur Rahman and Tawfiq E Elahi and Bangladesh Bank governor Atiur Rahman also attended today’s meeting.
Ryad Yusuf, managing director of the securities division of the Goldman Sachs International, was one of the three visiting officials. Jonathan Donne, managing director of the securities division of the Goldman Sachs, Asia and Paul Rhodes, managing director of the financing group of the same organisation were the other officials.
Goldman Sachs identified Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South Korea and Vietnam as the Next-11.
-With New Age input
