To fuel its ambitious power projects, the Bangladesh government for the first time will be issuing bonds to raise funds for the power sector.
State-run Ashuganj Power Station Company (APSCL) on Sunday signed deals with several banks and financial institutions for issuing the bonds. The deal was inked between APSCL and Bangladesh Infrastructure Finance Fund, Agrani Bank Ltd., Rupali Bank Ltd., Sonali Bank Ltd., Uttara Bank Ltd., Sadharan Bima Corporation and ICB.
APSCL is going to raise Tk 600 crore (USD 71 million) by issuing these bonds. Of the amount, Tk 500 crore (USD 59.7 million) will be collected through private investment and the rest through stock market.
Finance Minister A M A Muhit said that energy is the key requirement for the development of a country. The progress in the sector must be kept up.
Energy Adviser to the Prime Minister Tawfiq-e- Elahi Chowdhury BB said raising funds through bonds would deepen relations with financial institutions, making it easier to mobilize funds in other sectors.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid also concurred with him and said that the government is collecting funds for the power sector from alternative sources as the sector is expanding fast. “In future, we can even raise funds from the foreign stock markets,” he added. The expansion in the power sector has to be continued, he said.