ICB plans to issue Tk 2,500cr bond

The Investment Corporation of Bangladesh, which is one of the biggest financial specialists in the capital market, plans to issue a long haul obligation of Tk 2,500 crore to prop up jumpy stocks. 

The improvement comes as the state-claimed endeavor winds up in a spot of money mash after banks began hauling out assets from November a year ago after a national bank see that educated them to entirely keep up their single borrower introduction confine. 

Banks' single borrower presentation restrict is 15 percent of their aggregate paid-up capital, and some loaned to such an extent or more to the ICB alone. 

The banks' serial withdrawal has pushed the ICB in a tight corner: its capacity to put resources into the market has truly been shortened, and it needed to go on a pitching binge to recover the assets to come back to banks. 

This had the domino impact of dragging the stockmarket down: since November 19 a year ago, DSEX, the benchmark general list of the DSE, shed 734.9 focuses, or 11.65 percent. 

DSEX shut down at 5,572.05 focuses yesterday; on November 17 a year ago it was 6,306.95 focuses. 

"This bond would be issued inside 4-5 months," said Kazi Sanaul Hoq, overseeing chief of ICB. 

Inquired as to whether the security would discover numerous takers given the present liquidity strain in the capital market, he stated: "There are a considerable measure of organizations that will purchase our security." 

The ICB has been keeping up an AAA rating; its profit installment is likewise exceptionally lucrative, he said. For example, a year ago the ICB paid about Tk 450 crore as profit. 

"The ICB appreciates solid altruism in Bangladesh and past, so we would not confront any issue in discovering purchasers for the bond."