Bangladesh explores sovereign bond issuance to diversify foreign borrowing

The Bangladesh government is preparing to issue sovereign bonds in international markets for the first time to raise approximately US$1 billion. This initiative aims to diversify foreign borrowing sources as the country negotiates a new US$4.5 billion loan program with the International Monetary Fund (IMF).

According to the Finance Division of the Ministry of Finance, officials are considering several options, including US dollar and euro-denominated bonds, as well as Samurai bonds in Japanese yen and Panda bonds in Chinese yuan. The government plans to appoint JPMorgan and Bridgeworks International to manage the issuance, which will involve investor roadshows in London, New York, and Hong Kong.

In a related development to support domestic investment, Bangladesh Bank has expanded the Non-Resident Convertible Taka Account (NRCTA) facility. This allows overseas Bangladeshis to hold Taka deposits, use funds within the country, and freely repatriate both principal and interest. The accounts can be used for legitimate payments, family support, or local investments, including real estate and permitted share investments.