Govt eyes stock market for Padma bridge fund
The government plans to raise part of a fund from the stock market to construct the country's largest civil engineering project Padma Multipurpose Bridge, the finance adviser said yesterday.
"Apart from external financing, we will have to collect around Tk 4,000 crore from internal sources to construct the bridge. There is a possibility to raise a portion of the fund from the capital market," AB Mirza Azizul Islam told a discussion in Dhaka.
The disclosure came as the communications ministry is set to hold a crucial meeting today to discuss the financing of the proposed bridge that will connect the southwestern region direct with the capital and other parts of the country.
The adviser, however, did not elaborate on the amount and time of fund raising for the project.
Citibank NA Bangladesh organised the discussion on 'Contemporary Issues in the Capital Market and the Road Ahead'.
The 6.01km bridge between Mawa and Jajira over the river Padma will cost $1.8 billion (around Tk 12,500 crore), with $1.15 billion to be provided by international lenders, including Asian Development Bank, World Bank, Islamic Development Bank and Japan Bank of International Corporation.
The finance adviser advised entrepreneurs to raise funds from the stock market instead of bank borrowing, assuring them that such fund raising is no more of a hassle.
General investors should take the fundamentals of a company into consideration while making any investment in the capital market, Aziz said.
He said the stock market is largely dominated by the financial sector. “We need to diversify or expand the market."
“Our stock market is growing and the regulatory framework should responsive to it. The Securities and Exchange Commission is working to improve the regulatory framework,” the adviser added.
Aziz pointed to a lack of skilled officials who can deal with capital market issues. “Share departments of many issuer companies are not fully manned by appropriate people."
Citibank NA Managing Director and Citi Country Officer, Bangladesh Mamun Rashid also spoke.
Comments