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Bangla bond market debut likely in 2010
With the effort to achieve credit ratings from Moody’s and Standard & Poor’s now completed, the path is clear for the People’s Republic of Bangladesh to tap the international bond markets.
It's a BB-/B for B'desh
The People’s Republic of Bangladesh has obtained a BB- long-term and B short-term foreign and local currency ratings from Standard & Poor’s, with a stable outlook. HSBC acted as adviser to the government on the rating, which reflects the country’s relatively high public and external debt, its low income level and the government’s limited fiscal flexibility. These are, however, balanced by strong economic growth backed by stable fiscal and monetary positions.
Record breaker
Janata Bank is planning to raise Tk10bn (US$145m) in what would be Bangladesh’s largest-ever IPO, according to a Reuters report. The institution is the country’s second-largest bank and is currently owned by the state. ICB Capital Management is underwriting the transaction. An IPO filing was made to the regulator earlier this week. Mobile operator Grameenphone raised US$140m-equivalent in its IPO this year.
Buro gets more Citi help
Citigroup has bagged the sole mandate for an up to Tk2bn (US$29m) five-year amortising facility for Buro Bangladesh. The borrower is the fifth-largest microfinance institution in the country and will use the facility to provide financing for small and medium enterprises (SME).
Stellar debut
Grameenphone had an outstanding debut in Bangladesh stock markets when its US$70m hugely oversubscribed IPO began trading on November 16. The IPO was priced at Tk70 (US$1.02) per share, but closed the first day at Tk177.3.
Grameenphone's super success
Grameenphone’s up to US$70m IPO was hugely oversubscribed, with books for retail subscribers closing last week. The IPO, the largest ever listing in Bangladesh, opened for subscription on October 4. Its huge success is expected to bring back the focus of foreign investors to the country’s capital markets.
Grameenphone cuts back on IPO plan
Volatile markets have prompted Bangladesh’s leading mobile telephone company Grameenphone to cut the size of its equity raising and focus solely on getting interest for its IPO from domestic investors. Last week the bank started a 10-day marketing of a US$50m pre-IPO placement that it expects to close by early December. Subsequently, it plans to launch an IPO for up to US$75m which is being targeted at domestic retail and mutual fund investors.
Bangladesh calling
Grameenphone, Bangladesh's largest mobile telco, intends to sell Tk4.25bn (US$62m) 540-day and 720-day bonds via Citi. Both bonds will carry a coupon of 14.5%. The paper is being sold in 425 tranches of Tk10m each. The paper is fully placed with 10 institutions.
Citi mandated for Bangladesh’s first international IPO
Investors around the globe are getting a rare chance to buy a stake in the Bangladeshi telecom industry. Bangladesh’s leading mobile phone company Grameenphonesaid last week it is mulling an up to US$150m IPO, which will be preceded by a US$150m pre-IPO placement.
Pioneering Brac structure expands microfinance funding universe
The Bangladeshi microfinance institution Brac last week signed a US$55m-equivalent seven-year taka loan, marking first microfinance loan and the longest-tenor commercial syndication out of the country.
Bangladesh bond market catches supranationals’ eye
Supranational issuers including the Asian Development Bank (ADB) and the International Finance Corp (IFC) are looking at issuing in the Bangladesh bond market, in what would represent the first non-government issuance and the first by offshore borrowers in the country’s debt capital markets.
Banks pile into Bangladesh Petroleum loan
A US$250m 360-day facility for Bangladesh Petroleum Corp (BPC) closed last week following an overwhelming response that saw 19 lenders joining sole bookrunner Standard Chartered. The loan marks BPC’s debut in the loan markets as well as the largest widely syndicated loan from Bangladesh.
Bangladesh's Brac establishes template for microfinance ABS
Brac, a Bangladeshi-body that claims to be the largest NGO in the world, last week closed Asia’s first securitisation of microcredit loans and the first securitisation in Bangladesh.