Bangladesh plans floating rate bonds

Bangladesh has planned to issue floating rate bonds, the first of its kind in the country.

The objective behind issuing the bonds is to meet the government's own rising financial need and develop debt profile, Xinhua news agency reported.

Md Ekhlasur Rahman, a Finance Ministry official, said the government has already issued a notification in this regard.

According to the officials, maturity period of the bond styled "Floating Rate Treasury Bonds" (FRTB) will be more than one year.

Non-resident investors will be eligible to purchase the floating bond with fund from a non-resident foreign currency account, or Non-resident Investors Taka Account (NITA) with a bank in Bangladesh in the name of the purchaser, they said.

And such investors will also be eligible to transfer coupon payments and resale or redemption proceeds abroad in foreign exchange, according to the features.

The country's financial intermediaries said shorter floating rate securities will help ensure government's borrowing plan.

--IANS

ahm/mr