A fresh plan to raise $5bn by issuing sovereign bonds is being mulled by the government.
Also Read- Muhith: Issuance of sovereign bond not now
On the first week of 2014, the Finance Ministry decided in principle to issue $2bn-worth sovereign bonds from 2015 to collect fund for major infrastructures like Padma Bridge.
The plan never saw the light of the day as two weeks later, the Finance Minister AMA Muhith vetoed against it, considering the low interest rate the sovereign bond market was offering at the time.
Also in 2011, the government made the first move to issue sovereign bonds to raise $500m from the international market to implement development projects because of poor availability of soft loans from the donors. But it abandoned the plan after identifying risks including appreciation of local currency against dollar and fall in soft loans from donor agencies the previous year.
On Thursday, however, Muhith sounded more optimistic about it, after a PRI (Policy Reserve Institution) report favouring such a move.
While talking to reporters at the Secretariat, he said initially the bonds will be worth $1bn-$2bn and the government will soon enact regulations in this regard.
In 2014, US-based investment bank Goldman Sachs and German Deutsche Bank AG had offered Bangladesh government to raise up to $3bn in funds from the international bond market by issuing sovereign bonds.
Bangladesh is one of the “Next 11” countries identified by Goldman Sachs in 2005 as a fast growing economy.