United News of Bangladesh

Southeast Bank PLC will raise Tk 800 crore through the issuance of its “Southeast Bank 6th Subordinated Bond”. According to Bangladesh Securities and Exchange Commission (BSEC) sources, the approval was given at the commission’s 1,031st meeting on Tuesday, chaired by BSEC Chairman Masud Khan. The seven-year bond will be fully redeemed at maturity and will be non-convertible and unsecured. Its coupon rate will be set at the reference rate plus 3 percent. The bond will be issued through private placement to institutional investors and high-net-worth individuals, with a face value of Tk 5 lakh per unit. Southeast Bank will use the proceeds to strengthen its Tier-2 capital base under Basel III requirements. DBH Finance PLC will act as the trustee, while UCB Investment Limited will serve as the issue manager. The bond will be listed on the main boards of both stock exchanges in Bangladesh.

Bangladesh Bank (BB) has issued its first comprehensive operational guidelines for Islamic credit cards, prohibiting commercial banks from generating extra revenue from growing customer debts or delayed bill payments. According to the directive issued by the central bank on Tuesday, any scheduled bank currently offering Islamic banking services is eligible to issue Taka-denominated cards. However, banks must hold Authorised Dealer (AD) licences to issue foreign currency or dual-currency cards. Under the new policy, all credit purchases, cash advances, and delayed payment periods will be treated strictly as “Qard Hasan” (an interest-free loan). Banks are prohibited from charging any profit or interest on these loan amounts. They can only levy fixed service fees (Ujrah) for specific, identifiable services rendered. Furthermore, banks are barred from using Mudarabah deposit funds—where depositors place money to earn profits—to finance credit card operations. Service charges, including card issuance, renewal, account maintenance, and cash withdrawal fees, cannot exceed the "actual direct cost" incurred by the bank. The central bank also restricted banks from passing merchant discount commissions on to cardholders. Any excess funds collected under this head must be refunded to customers at year-end or donated to charity. Elaborating on the fee cap, BB stated that if issuing and maintaining a card costs a bank Tk 800 annually, the maximum service fee charged cannot exceed Tk 800. Charges benchmarked as a percentage of the credit limit (e.g. 2 percent of the credit limit) or outstanding balances are strictly banned. Similarly, cash advance fees must be set as a flat amount rather than a percentage of the withdrawn amount. Cardholders who miss payment deadlines will be required to donate a pre-committed fixed amount to charity. Banks cannot record these penalty funds as corporate income. Since the charity amount is fixed upfront, it cannot escalate based on the length of delay. For example, if the agreed charity penalty is Tk 500, a customer delaying payment by two days or two months will donate the exact same sum of Tk 500. Cardholders will get a five-business-day cooling-off period following approval, during which they can cancel the card without penalty. Banks must issue a 30-day advance notice before modifying any fees or terms. Cardholders will not be held liable for fraudulent or unauthorised transactions. Unapproved transactions made after reporting a lost or stolen card must be refunded within seven working days. Cash withdrawals are capped at a maximum of 50 percent of the total credit limit, and banks are instructed to set credit limits conservatively to prevent over-indebtedness. Islamic credit cards cannot be used to purchase goods or services prohibited under Shariah law. Banks must implement Merchant Category Codes (MCC) to automatically block such transactions at the Point of Sale (POS). Mandatory blocked categories include alcohol, gambling, tobacco, and cryptocurrency trading. Additionally, banks are required to conduct annual Shariah audits and submit a consolidated compliance report to Bangladesh Bank within two months of the financial year-end. Any earnings derived from non-compliant transactions must be immediately disbursed to charity.

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved proposals from five commercial banks to raise a combined Tk 3,500 crore through bond issues to strengthen their capital base. The decisions were taken at the commission's 1031st meeting, held at its office in Agargaon with BSEC Chairman Masud Khan in the chair. The commission approved a Tk 400 crore unsecured, non-convertible, fully redeemable, floating rate subordinated bond (Bond-VI) of One Bank PLC. The coupon rate will be the reference rate plus 3 percent. It will be issued through private placement to institutional and high-net-worth individual investors, with a face value of Tk 1 lakh per unit. Green Delta Capital Limited will act as trustee and UCB Investment Limited as issue manager. It also approved Southeast Bank PLC's Tk 800 crore, seven-year, fully redeemable, non-convertible, unsecured, floating rate subordinated bond (6th Issue), carrying a coupon of the reference rate plus 3 percent. Each unit will have a face value of Tk 5 lakh and will be placed privately with institutional and high-net-worth investors. DBH Finance PLC will serve as trustee and UCB Investment Limited as issue manager. BRAC Bank PLC received approval for a Tk 1,000 crore, three-year, unsecured, non-convertible, fully redeemable zero-coupon green bond, with a probable discount rate of 8.5 percent. Corporate entities, provident and gratuity funds, high-net-worth individuals and other eligible investors can subscribe through private placement, with each unit valued at Tk 10 lakh. The bank will use the proceeds for low-cost green financing to eligible clients. Prime Bank Investment PLC will be the trustee and IDLC Investments Limited the issue manager. The commission also approved Al-Arafah Islami Bank PLC's Tk 500 crore, seven-year, unsecured, non-convertible, redeemable, floating rate subordinated bond (AIBPLC 5th Subordinated Bond). The coupon will be the reference rate plus 3 percent, and each unit will be worth Tk 5 lakh. It will be issued to institutional and high-net-worth investors through private placement. DBH Finance PLC will be the trustee and UCB Investment Limited the issue manager. Bank Asia PLC's Tk 800 crore, seven-year, unsecured, non-convertible, fully redeemable, floating rate and sustainable subordinated bond was also cleared. The coupon rate will be the reference rate plus 3 percent, with each unit valued at Tk 10 lakh. It will be placed privately with institutional investors, high-net-worth individuals and other eligible investors. Besides bolstering the bank's Tier-II capital, the proceeds will finance and refinance eligible green and sustainable projects. DBH Finance PLC will be the trustee and Prime Bank Investment PLC the issue manager. The proceeds of One Bank, Southeast Bank, Al-Arafah Islami Bank and Bank Asia bonds will strengthen their Tier-II capital base under Basel III. The One Bank, Southeast Bank, BRAC Bank and Bank Asia bonds must be listed on the Main Board of the stock exchanges.

Bangladesh Bank organized a workshop to bring financially underserved women into the formal financial system. The title of the workshop was "Accelerating Financial Inclusion of Women" at the CSS Awa Center in Rupsha Upazila of Khulna recently. Bangladesh Bank Deputy Governor Dr. Md. Habibur Rahman attended the program as the chief guest, while NAU Director Shayema Islam presided over the session. Speaking on the occasion, discussants highlighted the importance of inclusive financing, analyzed the current scenario for marginal women, identified existing barriers, and outlined strategies to overcome them.  They stressed expanding special credit facilities for women, promoting digital financial services, enhancing opportunities in e-commerce and freelancing, boosting financial literacy, and formulating necessary inclusive policies. A total of 10 financial service booths were set up on the workshop premises by banks, finance companies, mobile financial service providers (MFSPs), and microfinance institutions. Deputy Governor Dr. Md. Habibur Rahman, along with participating women, visited the booths, where several marginal women opened financial service accounts and received basic guidance on financial products. Bangladesh Bank Executive Director Rup Ratan Pine and Bangladesh Bank Khulna Director SM Kamaluzzaman Kamal attended the event as special guests. The workshop was moderated by NAU Additional Director Shahana Ferdousi. Khulna University Development Studies Discipline Associate Professor Dr. Md. Hasan Howlader, Microcredit Regulatory Authority Director Mohammad Kamal Hossain, and senior officials from various financial institutions took part in the discussion. Underprivileged women and local women entrepreneurs shared their personal experiences during the workshop, and an awareness quiz competition was organized for the participants. A total of 120 individuals, including representatives from banks, finance companies, MFS providers, microcredit organizations, and financially excluded women, participated in the workshop.  

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday gave its no-objection to the reconstitution of Beximco Pharmaceuticals PLC's board with nine directors, as proposed by the company. The decision came at the commission's 1031st meeting, chaired by BSEC Chairman Masud Khan at the commission's Agargaon office. The commission took the decision on the company's application, after considering the High Court's oral direction, the opinion of its panel lawyer and the overall interests of investors. Under the proposed structure, three sponsor directors, ASF Rahman, Osman Kaiser Chowdhury and Iqbal Ahmed, will sit on the board. A managing director will be newly appointed, and one director will represent a local financial institution, IFIC Bank PLC. The board will also have four independent directors, three of them to be newly appointed, including one woman, in line with the Corporate Governance Code, 2018.

Bangladesh is preparing to issue sovereign bonds in the international capital market for the first time, aiming to raise up to US$ 1 billion within the next three months, according to official sources. The government is currently in the process of appointing global financial services firm JPMorgan Chase & C. as the issue manager for the debut bond, which is targeted for release by December this year. A Bangladeshi delegation recently held meetings with institutional investors in several European countries and in New York of the USA. A Bloomberg report noted that around 15 major global investment firms, including BlackRock, Pacific Investment Management Company (PIMCO), Texas Pacific Group (TPG), Macquarie, GoldenTree Asset Management and MetLife, have shown preliminary interest in the country's upcoming sovereign bond. "Investor interest in our sovereign bond is extremely high," Tanvir Shahriar Ghani, special assistant to the Prime Minister on investment and capital market affairs, has recently said. He heads a high-level committee formed by the Ministry of Finance in July to assess the feasibility of the issuance. Tanvir, however, added that further discussions are necessary before finalising the bond's structure, interest rates, and legal aspects. "The government is closely monitoring the rising cost of borrowing in global markets, and the final decision will be made after evaluating investor rate expectations," he said. If successful, the initiative will establish Bangladesh’s sovereign debt pricing benchmark in global capital markets for the first time, opening up direct foreign currency market-based financing in the future. Strategic shift in foreign financing: Historically, Bangladesh has relied heavily on concessional financing from multilateral development partners, including World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and International Monetary Fund (IMF), as well as bilateral loans. However, changing global interest rate conditions have altered borrowing terms, while Bangladesh faces rising development expenditure, debt repayment obligations, and dollar demand. With the national budget for the current fiscal year set at Tk 9,38,000 crore, a significant deficit must be covered through financing. Entering international debt markets aims to diversify financing sources and position Bangladesh as a regular participant in global capital markets. US$ bonds first, others under evaluation The initial issuance is most likely to be US Dollar-denominated due to higher market liquidity. However, the government is also exploring the possibility of issuing Samurai bonds in Japanese Yen, Panda bonds in Chinese Yuan, Dim Sum bonds in Hong Kong, and Islamic Shariah-compliant Sukuk bonds in the future. Bangladesh Bank has already held discussions with a delegation from the Export-Import Bank of China regarding potential Panda bond issuances. Government officials emphasised that while the initial target is $500 million, the amount could be expanded up to $1 billion if market conditions remain favourable. Nevertheless, the government remains cautious about its overall credit rating, foreign exchange debt servicing capacity, and borrowing costs to prevent overburdening future foreign debt.  

Bangladesh Jewellers Association (BAJUS) has reduced gold prices again, cutting the price of 22-carat gold by Tk 2,216 per bhori to Tk 228,556 including VAT. In a notice issued on Tuesday, BAJUS said the revised prices came into effect at 10:00am the same day. According to the notice, the price adjustment followed a decline in the price of pure gold in the local market. Under the new rates, 22-carat gold costs Tk 228,556 per bhori (11.664 grams), while 21-carat gold is priced at Tk 218,292, 18-carat gold at Tk 187,440 and traditional-method gold at Tk 153,148 per bhori, including VAT. BAJUS said the prices would remain effective at all jewellery shops until further notice. Making charges will vary depending on the design of the ornaments. As VAT is included in the selling prices of gold and silver jewellery, customers cannot be charged VAT separately. The association's existing rules on exchanging and purchasing ornaments, excluding applicable VAT, making charges and stone costs, will remain in force. Earlier, on September 28, BAJUS reduced the price of 22-carat gold by Tk 2,158 per bhori to Tk 230,772, including VAT. With the latest adjustment, gold prices have been revised 119 times in the domestic market so far this year, with 58 increases, 60 reductions and one VAT adjustment. Alongside gold, BAJUS has also reduced silver prices by Tk 175 per bhori, setting the price of 22-carat silver at Tk 4,316, including VAT. Under the revised rates, 21-carat silver costs Tk 4,141 per bhori, 18-carat silver Tk 3,558 and traditional-method silver Tk 2,683. Silver prices have been adjusted 73 times in the domestic market so far this year, with 36 increases and 37 reductions.

Asian stocks mostly declined Tuesday after major U.S. indexes ended lower in the previous session, while U.S. Treasury yields paused after reaching their highest levels in about two decades. U.S. stock futures edged down, while oil prices increased amid uncertainty over talks between the United States and Iran and the possibility of reopening the Strait of Hormuz, a key route for global oil shipments. On Monday, the S&P 500 fell 0.8%, the Dow Jones Industrial Average dropped 0.7% and the Nasdaq composite declined 0.9%. Rising U.S. Treasury yields have put pressure on stocks as investors seek better returns amid concerns about inflation and growing U.S. government debt. The yield on the 10-year U.S. Treasury note reached 5.27% Monday, its highest level since 2007. It stood at about 5.25% early Tuesday, compared with 5.17% last Friday. Oil prices, already elevated and contributing to inflation, rose further Tuesday as mediators continued efforts to reach an agreement between Washington and Tehran. U.S. President Donald Trump rejected an Iranian offer over the weekend to reopen the Strait of Hormuz. Brent crude, the international benchmark, rose 1.8% to $99.63 a barrel, well above about $72 a barrel in late February before the Iran war. Japan’s Nikkei 225 fell 1.2% to 65,114.64, while South Korea’s Kospi declined 0.6% to 6,847.56. Hong Kong’s Hang Seng Index dropped 0.5% to 24,516.46. Shares of online fast-fashion retailer Shein traded in Hong Kong fell 11.7% after the company reported a 67% year-on-year decline in adjusted net profit for its latest quarter. China’s Shanghai Composite edged up 0.1% to 3,826.51 after state-run Xinhua News Agency reported Monday that the State Council discussed ways to improve the effectiveness of macroeconomic policies and support economic growth. Australia’s S&P/ASX 200 rose 0.1% to 8,686.20. Taiwan’s Taiex fell 0.6%, while India’s Sensex declined 0.7%. The U.S. dollar rose slightly to 157.42 Japanese yen from 157.39 yen. The euro fell to $1.1362 from $1.1371.

An initiative has been undertaken to develop a five-star eco-friendly resort in the Cox’s Bazar–Teknaf coastal belt, involving a potential foreign investment of approximately US$500 million in Bangladesh’s tourism sector. To implement the project, a Memorandum of Understanding (MoU) was signed on Saturday (September 26) at a hotel in Kuala Lumpur, Malaysia. The agreement was signed by Malaysian hotel-resort entrepreneur Tan Sri Syed Yusof Jojo, former Vice-President and Tourism Minister of the Maldives Ahmed Adeeb, and Chairman of Bangladesh's Versatilo Group Dr. Kamrul Ahsan, according to a press release issued on Monday (September 28). Under the initial plan, a joint investment company will be established in Bangladesh to develop the large-scale, sustainable, and luxurious resort. The project promoters are currently in discussions with several globally recognized hotel brands regarding international management and operational partnerships, including Mövenpick, Novotel, and Grand Hyatt. The brand partner and operating company will be finalized following commercial negotiations and formal procedures. The proposed resort complex will feature luxury hotels and villas, international-standard restaurants, health and wellness facilities, entertainment amenities, and nature-based tourism infrastructure. Highlighting the investment potential, Tan Sri Syed Yusof Jojo—who has developed high-profile properties including Four Seasons Kuala Lumpur, Concorde Hotel, and Hard Rock Hotel Penang—said he was honored to join this new chapter in Bangladesh’s tourism industry, calling the Cox's Bazar project highly attractive and investment-friendly. Former Maldivian Tourism Minister Ahmed Adeeb stated that the initiative offers an exceptional opportunity to apply the Maldives' experience in coastal tourism development to Bangladesh's beach region. Dr. Kamrul Ahsan, Chairman of Versatilo Group, emphasized that bringing global investment and expertise to Bangladesh is aimed at elevating the country's tourism profile. He noted that the goal is not merely to build a hotel, but to create a world-class eco-tourism destination on the world's longest natural sea beach.

Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Masud Khan on Monday emphasized the need to introduce a unified, highly secure back-office software for all brokerage houses to prevent fund embezzlement and recurring financial irregularities in the capital market. Speaking at the inauguration of the Investor Protection Fund (IPF) distribution ceremony organized by the Dhaka Stock Exchange (DSE), in its headquarters in Nikunja, Khan stated that in the digital era, authorities must have real-time access to brokerage houses' bank accounts and Consolidated Customers' Accounts (CCA). "A unified, highly protected single back-office software must be implemented to provide real-time data so that we can conduct daily reconciliations," he said, noting that such a system would enable rapid identification of fund shortfalls or irregularities while reducing direct regulatory oversight pressure. He also stressed the importance of advancing Order Management Systems (OMS). Disclosing figures on recent market irregularities, the BSEC chief revealed that 17,967 investors were affected by financial opacities totaling Tk 492 crore across five securities houses. Terming the accumulated problem deeply concerning, he noted that the fund distribution marks the beginning of a resolution brought about through joint teamwork between the DSE, BSEC, and the Investors Forum. Outlining the refund process through the IPF, Khan announced that affected investors with claims under Tk 5 lakh will receive 100 percent of their money back in the first phase. He noted that approximately 96 percent of all affected investors have claims below Tk 5 lakh, assuring that those with claims exceeding Tk 5 lakh will also be covered in subsequent phases to rebuild confidence in the stock market. DSE Chairman Mominul Islam, Managing Director (MD) Nuzhat Anwar, Board members and victim investors also spoke in the event.