Bangladesh is considering issuing its first sovereign bonds on international markets as it seeks new sources of funding for record government spending.
According to Farid Ahmed, Deputy Secretary for Public Debt Management at the Ministry of Finance, the government has formed an inter-ministerial committee to analyze the feasibility, structure, and timing of the initial offering. He made the announcement in a telephone interview with Bloomberg on Wednesday.
A successful debut issue will allow the government to diversify its funding sources, reducing its reliance on domestic banks and concessional multilateral loans. It will also create a global price benchmark for future overseas borrowing by Bangladeshi companies.