Home ›› 03 Feb 2022 ›› Front
Four more local companies are all set to get Bangladesh Bank’s approval to invest abroad.
The companies are – Chattogram-based steel manufacturer BSRM, pharma companies Square Pharmaceuticals and Renata Ltd and garment sector company Columbia Garments.
On Wednesday, the proposal evaluation committee (PEC) for investment abroad, headed by BB Executive Director Abul Kalam Azad, recommended the four companies after scrutinising their proposal and rejected those of two others.
Azad told The Business Post that the companies would get the final nod after the BB governor’s approval. The four companies have been recommended on a case-to-case basis.
BSRM and Columbia Garments are going to invest in Hong Kong, Square Pharma in the Philippines, Renata in Ireland and UK, as per the committee’s recommendation letter.
The PEC rejected proposals of Sonargaon SEEDS CRUSHING, a company of Meghna Group, and startup company BD Venture Ltd, said the letter.
Another high official of the central bank said the companies are going to invest abroad as part of their efforts for marketing their products. He added that they would have to set up offices in the destination countries.
He said that the companies would get approval from the BB as per the previous rules.
The BB official said SEEDS CRUSHING and BD Venture Ltd were rejected as they lacked proper documents. They will have to apply under the new guidelines for investing abroad in the future.
The BB officials also said that BD Venture Ltd was rejected as it did not have prior approval from the Bangladesh Securities and Exchange Commission.
Columbia Garments Managing Director Salahuddin Ahmed told The Business Post that his company would invest $1.5 million in Hong Kong.
On January 16 this year, the government framed rules for the first time allowing local entrepreneurs to invest abroad—a policy that was a long-standing demand of businesses.
From now on, a Bangladeshi company can make equity investment abroad up to 20 per cent of its average annual income from exports during the last five years or 25 per cent of net asset value as per the latest audited reports, whichever is lower, according to the new guidelines.
The Bangladesh Bank has so far permitted 16 companies on a case-to-case basis to open subsidiaries in countries such as Malaysia, Singapore, Ethiopia, and Kenya. Since 2014, the BB has allowed them to invest $59.9 million abroad.
Summit Group, Ha-Meem Group, Nitol-Niloy Group, Meghna Group, and Pran-RFL Group also plan to invest abroad.
