Trade and Investment Opportunities
Abrar A. Anwar
Managing Director & Head of Wholesale Banking
29-March-2014
Standard Chartered: Bangladesh
Universal Banking in Bangladesh
Capital
Markets
 Awarded “The Best Foreign Commercial Bank in
Bangladesh” by FinanceAsia in 2009-2013; “Bank of
the Year” at the Bankers Awards 2012-2013
 Over 108 years of presence
Corporate
Finance
Islamic
Banking
Financial
Markets
 Largest product suite
 Highly experienced team
 Numerous industry first deals
 Pioneered several products in the market
Transaction
Banking
Consumer
Banking
SME
Banking
 Rated AAA by rating agencies
 Largest Foreign Bank in Bangladesh
 Capital base of USD340m (Dec 31, 2013)
 Asset base of USD3.4bn (Dec 31, 2013)
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Standard Chartered Bank and or its affiliates ("SCB”) makes no representation or warranty of any kind, express, implied or statutory regarding this document or any information contained or referred to on the document. The information in this document is provided for information purposes only.
Standard Chartered: Bangladesh
Here for Clients
Ashuganj Power Station
BSRM
Janata/Agrani Bank
CP Bangladesh
Biman Bangladesh
USD47m
USD356m
USD193m
USD120m
USD 115m
ECA backed Term Loan for
second largest power producer
Structured short term FCY
financing against G’-Sec for
commercial banks
Largest multi-currency
Syndicated term financing
for a local corporate
Co-Arranger
Orascom
Grameenphone
BPC
Axiata
USD74m
USD355m
USD400m
USD115 m
Syndicated Loan Facility
Syndicated Term Loan for telecom
operator
Lead Arranger
Co-Arranger
Short Term Loan
Syndication for Stateowned petroleum
importer/distributor
Co-Arranger
Syndicated Term
Loan for expansion
project for
international poultry
player
Syndicated Term Financing for
procurement of aircrafts for the
national carrier
Lead Arranger
Summit Bibiyana
Syndicated Loan Facility with
USD145m Backstop for telecom
operator
USD400m
Financial Advisor for 700MW
Power Plants.
Lead Arranger
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Standard Chartered Bank and or its affiliates ("SCB”) makes no representation or warranty of any kind, express, implied or statutory regarding this document or any information contained or referred to on the document. The information in this document is provided for information purposes only.
Bangladesh: At a Glance
•
Sovereign Rating: LT BB- and ST B (S&P) & Ba3 (Moody’s).
Stable Outlook” in the past 4 years
•
External Debt: : USD 26.1 Bn (89% Long Term & Concessional).
Strong debt service capability.
•
Floating Currency Exchange Rate; Limited Capital Account
Convertibility
•
Financial Intermediaries: 56 Banks, 31 NBFI, 62 Insurance
Companies
•
GDP steadily and consistently growing during the last 30+ years
•
Population of 154.7 M of which 54.52% is of working age
•
Strategically located between India & China, with access to Indian
Ocean through Bay of Bengal
37th
Fastest
GDP
Growth
Country in
2012
8th Largest
Remittance
Recipient
65th Largest
Goods
Exporter
57th Largest
Goods
Importer
Source: World Bank and WTO
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Debt Capital Market Opportunities
Short Term
• Short Term Loan Syndication for Corporate
• Funded Risk Participation for Trade Finance
• Short Term Finance for Oil Import of Bangladesh
Petroleum Corporation
Medium Term
• Medium Term Loan Syndication for Corporate
• Structured Export Finance - ECA Backed Financing
• Islamic Finance for Corporate
• Energy & Power Sector Projects
Long Term
• Infrastructure Finance
• Sovereign Bonds & Government Treasury Bonds
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Equity Investment Routes
Foreign
Institutional
Investors
(Portfolio
Investment
Scheme)
Foreign Direct
Investments
(FDI) / PE
• FIIs can directly invest in listed securities & preIPOs
• Institutional Investors can invest simply by
opening NITA (Non-Resident Investor’s Taka
Account) with a bank
• No other regulatory registration required
• No prior approval required from SEC or central
bank
• Sale processed are freely remittable without
prior approval
• Buy/Sell on exchange through registered broker
• No investment limit except for bank company
share up to10%
• Registration required with Board of Investment
(BOI)
• All sectors are open except for a few reserved
government sectors ( Arms, Security printing,
Atomic Energy etc.,)
• Exit available through sale to other non-resident
investors in foreign currency
• Repatriation of sale proceeds subject to tax and
prior approval of the Central Bank
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Incentives for Foreign Direct Investors
Ownership
• No limitations in foreign ownership.
Repatriation
• Full repatriation of profit & dividend without prior approval of central bank.
Protection of
Investors
• Legal Protection against: (a) Nationalization, (b) Expropriation, (c) Nondiscriminatory Treatment.
Incentives for
Exporters
• Concessionary duty on imported capital machineries while no import duty
for 100% export oriented industry.
• Fiscal/ non-fiscal and infrastructural facilities for investment in Export
Processing Zone (EPZ ).
Avoidance of Double
Taxation
Tax Exemption
• For countries with Bi-lateral agreements.
• Exemption on royalties, technical know-how fees received, dividend income ,
capital gain and interest on foreign loans under certain conditions.
• Usually 5-7 years, 15 years for electric power generation
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Export processing Zones (EPZ)
EPZ Performance
8 EPZs
400
4500
4000
3500
3000
2500
2000
1500
1000
500
0
350
300
250
3rd Best cost effective
zone globally ranked by
FDI magazine
200
150
100
50
0
2005-06
Asia’s low cost
production base
2006-07
2007-08
2008-09
Exports from EPZ, US$mn (RHS)
2009-10
2010-11
2011-12
Investment in EPZ, US$mn (LHS)
Brands made by EPZ
Ranked as 9th most
potential Free Zone of
Future (CEPZ)
USD 2.5 Bn investment
so far
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Thrust Sectors
Power
ICT
Pharmaceuticals
Textile & Garments
Infrastructure
Leather & Leather Goods
Electronic Goods
Agro Based
Ceramics
Light Engineering
Frozen Food
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Bangladesh – India Corridor at a Glance
•
15% of BD’s import is from India
•
USD 135M of FDI originated from India over last 5 years
(2.43% of total FDI)
•
Total export (2012-13) to India was USD 564M (2.09% of
total export). Diversified product range mainly from food
and RMG
•
Total import (2012-13) from India was USD 4.9B (16.3% of
USD 0.5B / Year
total import). Majority (27%) underlying goods are cotton /
yarn etc.
•
USD 4.9B / year
Export performance to India could not reach full potential
due to various tariff and non tariff trade barriers
•
Initiative has been taken to explore India as BD’s prime
export destination
•
Indian Government has allowed 146 items’ duty free
export from Bangladesh (90% of which is garments items)
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Bangladesh – India Corridor at a Glance
Company Name
TCS
Reliance
ONGC
Infosys
HDFC Bank
Coal India
ICICI Bank
SBI
HDFC
Wipro
Tata Motors
Bharti Airtel
Larsen
Sun Pharma
HCL Tech
NTPC
Axis Bank
IOC
Cairn India
Bajaj Auto
Kotak Mahindra
M&M
Maruti Suzuki
Ultratech Cement
Presence in BD
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Thank You
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