A two-day
international investor conference, first of its kind in the
capital market history of Bangladesh begins on May 10,2007 in
Dhaka. Jointly hosted by Dhaka Stock Exchange (DSE) and Citigroup,
the conference titled 'Bangladesh-the new investment frontier-
is expected to be attended by leading 50 to 75 equity and fixed
income investors across the globe. DSE arranged a press conference
on the occasion in the DSE Board Room on March 11,2007. DSE
President Mr. Md. Abdullah Bokhari said the high-profile conference
will showcase the country's capital markets and its investment
potentials. Managing director and country officer of Citigroup
Bangladesh, Mr. Mamun Rashid, DSE Senior Vice President Mr.
Ahmad Rashid Lali and DSE Chief Executive Officer Prof. Salahuddin
Ahmed Khan also spoke on the occasion.
The organizers said the key messages attempted to disseminate
through this conference include issues on Bangladesh's overall
economic potentials, untapped capital market and its reforms
in last decade, current legal and governance frameworks, public
and private foreign investment opportunities with special highlights
on some sectors like power, telecom, textiles, pharmaceuticals
and financial services. "With the country's fundamentals being
driven by exports, growing urbanization and strong foreign remittance,
there is need for significant private sector-led investment
in major infrastructure projects and both Citigroup and DSE
believe that the timing is right to host this conference for
further exploration of Bangladesh capital market. DSE President
Mr. Md. Abdullah Bokhari said the savings rate as well as foreign
reserve position of Bangladesh is not yet sufficient enough
in comparison to our neighboring countries, so large capital
investment projects especially in the infrastructure sectors
needs fund mobilization from home and abroad. "Our planned conference
will be able to attract the international institutional investors
to have a direct insight on the emerging capital market," the
DSE President said. DSE Senior Vice President Mr. Ahmad Rashid
Lali said Bangladesh stock market will go ahead with the entry
of more and more companies in telecom, oil and gas sectors in
near future. He said the stock market will thrive in tandem
with the growing economy of Bangladesh. DSE CEO Prof. Salahuddin
said there is an investment proposal of $ 150 million from the
foreign investors but they were not happy with the poor infrastructure
support of Bangladesh. The DSE CEO said Bangladesh need to be
presented as one of the most attractive destinations for investors
from home and abroad. Replying to a question, Mr. Mamun Rashid
said, Citi Bank, NA the global financial institution will be
listed in the local stock market, once the policy supports are
ensured. Foreign banks operating in the country are still out
of the capital market for lack of encouragement under the government
financial policy. Mr. Mamun Rashid said the foreign investors
of Citibank NA are now observing the situation. " If there is
an encouraging development, we'll definitely come in the capital
market."
At present, the listed companies get 7.5 percent tax exemption
while the non-listed companies have to pay 37.5 percent tax.
But the listed and non-listed banks are to pay 45 percent tax,
and there is no tax exemption for the listed banks. "If we get
facilities like the listed and non-listed companies, we will
definitely enter the capital market. Everything depends on policy
encouragement," said the Citigroup Bangladesh country officer.
He said Bangladesh has already been able to attract the foreign
investors' attention with a strong economic potentiality and
the ensuing conference will help facilitate the growth of the
securities market. "We are very much encouraged by the strength
of the Bangladesh economy and its near term capital market potential
and we believe the ensuing conference will create an opportunity
for leading equity and fixed income investors across the globe
to hear from key policy makers and market intermediaries in
the country," Mr. Mamun said. He said to support the important
initiative on the conference, Citigroup sees itself as a conduit
for transfer of world-class financial services and ultimately
help in the economic growth of the country.
