The Pulse | Economy | South Asia

Bangladesh’s First Dollar Bond Can Wait

The BNP government plans to issue sovereign bonds in December amid slow economic growth, fiscal strain, rising dollar bills, and a global downturn in the bond market.

Bangladesh is set to issue its first-ever sovereign bond denominated in dollars, most probably in December. The initiative aligns with the current Bangladesh Nationalist Party (BNP)-led government’s economic vision to strengthen the country’s bond and capital markets and reduce reliance on IMF and World Bank loans.

Initially, the government plans to issue bonds between $500 million and $1 billion, offering a regular yield, known as a “coupon,” of 7-8 percent to bondholders.

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Bangladesh is set to issue its first-ever sovereign bond denominated in dollars, most probably in December. The initiative aligns with the current Bangladesh Nationalist Party (BNP)-led government’s economic vision to strengthen the country’s bond and capital markets and reduce reliance on IMF and World Bank loans.

Initially, the government plans to issue bonds between $500 million and $1 billion, offering a regular yield, known as a “coupon,” of 7-8 percent to bondholders.

For months, Bangladesh has struggled to attract foreign direct investment and raise funds through the capital market, with zero initial public offerings since March 2024, while its banking sector has been distressed, with overwhelming non-performing loans. Amid the worsening economic situation, IMF loans came with stringent conditionalities to raise revenue collection and cut public spending, which at times means cutting social welfare expenses for the most underprivileged. Hence, the government’s decision to cancel........

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