The government is considering issuing a sovereign bond of up to $1 billion to access international capital markets and diversify its funding sources. The move was approved in principle by the Cabinet Committee on Economic Affairs earlier this month, with final authorization pending from the prime minister.

Finance Minister Amir Khosru Mahmud Chowdhury, who chairs the committee, confirmed that two separate proposals related to the bond issuance were endorsed. The government has engaged American investment bank JP Morgan and Hong Kong-based consultancy Bridgeworks International to facilitate the transaction and provide technical guidance throughout the process.

While the exact size of the bond offering is yet to be finalized, initial discussions indicate a potential issuance ranging from $500 million to $1 billion. Officials are also evaluating various currency options for the bond, including US dollar-denominated Eurobonds, Japanese yen-denominated Samurai Bonds, and Chinese yuan-denominated Panda Bonds, reflecting an effort to tap multiple foreign investor bases.

This initiative follows the establishment in July of an eight-member inter-ministerial committee tasked with assessing the feasibility of sovereign bond issuance. The committee includes representatives from the Finance Division, Economic Relations Division, Bangladesh Bank, and other government entities. Its mandate is to explore avenues for diversifying the government’s financing instruments and expanding international funding sources.

The government’s exploration of sovereign bonds marks a significant step toward broadening its fiscal toolkit amid evolving economic demands. Final approval and contract formalization are expected to follow the prime minister’s review of the submitted proposals.