Prime Minister's Private Industry and Investment Adviser Salman F Rahman on Tuesday underscored the need for making the bond market popular to facilitate long-term finance to the industry.
"Stock market in Bangladesh was only composed of equity transactions. However, the bond market is an integral part of a country's capital market to be a vibrant one. Recognising this need, the government has taken initiative to introduce bonds in the capital market," he said.
Salman F Rahman said this while speaking as the chief guest at a seminar on "Bond Market: The Ultimate Solution for Long-term Financing" held at Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in the city, said a press release.
The adviser said that mass awareness and bond pricing are crucial to making the bond market popular.
Speaking as the special guest, Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat-Ul-Islam informed that perpetual bond has already been introduced in the stock market.
"When other bonds become available, the bond market will be more popular," he added.
The BSEC Chairman informed that IFC expressed its keenness to introduce a bond of $4 billion in Bangladesh. BSEC plans to launch orange bonds for women entrepreneurs, pink for small and micro-entrepreneurs, and a start-up board for financing new entrepreneurs, he added.
In his welcome speech, FBCCI President Md Jashim Uddin laid emphasis on the bond market to curb default loans and to facilitate long-term finance to industry.
"If the bond market in the country gets popular, dependence on banks for loans will decrease. It will also minimise the risk of Non-Performing Loan- one the biggest challenges in the banking sector. Moreover, the bond market will appear as an alternative sustainable source of long-term finance for industrialists," he said.
FBCCI Senior Vice President Mostofa Azad Chowdhury Babu assured of all support from FBCCI in popularising the bond market.
Vice Chairman of Shanta Asset Management Limited Arif Khan delivered the keynote at the seminar. He informed that the country's bond market GDP ratio is only 8 per cent, which is much less than that many others countries.
Among others, FBCCI Vice President Md Amin Helaly, Md Habib Ullah Dawn, M A Razzak Khan Raj and the directors were present. Secretary General Mohammad Mahfuzul Hoque moderated the seminar.
