The government has announced plans to hold investor roadshows in London, New York, and Hong Kong as part of preparations for issuing its first sovereign bond, expected to be valued at under $1 billion. This initiative follows approval earlier this month from Prime Minister Tarique Rahman for the bond issuance, which is seen as a key step toward diversifying the country’s financing sources.
Two firms have been appointed to facilitate the process: the American investment bank JP Morgan and Hong Kong-based consultancy Bridgeworks International. JP Morgan will oversee critical aspects such as selecting legal counsel and trustees, preparing the offering circular, organizing investor presentations, marketing the bond, and determining the optimal timing and structure for the issuance. The final commission for JP Morgan is yet to be negotiated between the government and the bank. Bridgeworks International, on a one-year contract, will offer broader advisory services, including support on sovereign bonds, investment funds, telecommunications, digital infrastructure, data centres, renewable energy, and major infrastructure projects.
The duration, coupon rate, and other details related to the roadshows remain under discussion. Since this is the country’s first sovereign bond issue, there is no existing reference rate, and the coupon rate will be finalized following consultations with issue managers.
This bond issuance forms part of wider institutional reforms aimed at reducing reliance on debt financing while boosting equity-based foreign direct investment. A high-level, eight-member inter-ministerial committee, led by Tanvir Ghani, Prime Minister’s special assistant on investment and capital market affairs, has been tasked with assessing the feasibility of the sovereign bond offering since July. The government is also exploring the issuance of Japanese yen-denominated Samurai Bonds and Chinese yuan-denominated Panda Bonds in addition to U.S. dollar-based Eurobonds.
According to the finance ministry, the move to enter international capital markets is designed to diversify funding sources, extend debt maturities, and reduce refinancing and rollover risks. Efforts are underway to make public debt management more efficient, cost-effective, and sustainable, while keeping medium-term debt risks within acceptable limits.
Complementing these capital market initiatives, the government is organizing an international debt conference in Cox’s Bazar scheduled for mid-November. The event, jointly hosted with the Asian Development Bank, is expected to attract representatives from 30 countries, highlighting the country’s renewed focus on strengthening its financial position and attracting foreign investment.