Padma Bridge Creates Capital Market Opportunities: Experts

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The capital market, dominated by equities, also offers opportunities to finance mega projects by strengthening the bond market, as it is better able to finance long-term projects.

TBS Report

July 27, 2022, 9:30 p.m.

Last modification: July 27, 2022, 9:34 PM

A seminar entitled “Padma Bridge and Opportunities for Bangladesh’s Capital Market” was organized by Green Delta Capital at a hotel in Dhaka on Tuesday. PHOTO: COURTESY

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A seminar entitled “Padma Bridge and Opportunities for Bangladesh’s Capital Market” was organized by Green Delta Capital at a hotel in Dhaka on Tuesday. PHOTO: COURTESY

The Padma Bridge, built through public investment, has opened strong private investment avenues in the southwestern part of Bangladesh, with the capital market given the opportunity to meet investment needs while becoming dynamic, have said experts at a seminar on Tuesday.

The discussion titled “Padma Bridge and Opportunities for Bangladesh’s Capital Market” was hosted by local investment bank Green Delta Capital Ltd at a hotel in Dhaka.

The Prime Minister’s Economic Affairs Advisor, Dr. Mashiur Rahman, in his speech as guest of honor, said that the financial market can play a role in channeling people’s savings into productive sectors and that the market has enough resources and opportunities to do so through bond market expansion and crowdfunding deals. .

The equity-dominated capital market also has opportunities to finance mega-projects by strengthening the bond market as it is better able to finance long-term projects, said Dr Shamsul Alam, Minister of State in charge of planning.

Special guest, Secretary of Financial Institutions Division, Sheikh Mohammad Salim Ullah, said that Bangladesh needs investments to achieve long-term development goals and the government is counting on the role of the capital market to reach this goal.

Managing Director of Green Delta Capital, Md Rafiqul Islam, said in his keynote address, “The capital market can add value to bridge the long-term funding gap of the public and private sectors. strengthening the bond market, we can mobilize the funds to fully access the wide range of opportunities that Padma Bridge brings to the table.”

The self-funded bridge which opened a month ago is considered a game-changer for the economy due to the connectivity and economic opportunities for around 3 million people from the 21 districts in the southwest, it said. -he declares.

The Padma Bridge would boost the region’s GDP by 2.5% and the national GDP by 1.23%, he said citing various impact studies, adding that the manufacturing and agricultural sector in the South- West would see 9.5% annualized growth from the bridge, which would be 29.5% in healthcare, construction and real estate.

In addition, the largest bridge in the country offers the transportation industry a $500 million increase in five years, 3-5 times revenue from tourist spots in the Khulna region, and much higher demand for banking services. , insurance, energy and electricity. added the keynote speaker.

“While the country expects huge economic benefits from the Padma Bridge project, access to four key potential factors can add value for future development of any scale in the capital market,” said the investment banker.

The factors are infrastructure and communication, capital, human resources and information. Access to capital is the most important prerequisite for any capital market development.

The market can grow to meet the challenges ahead and become a major contributor as a reliable and sustainable source of capital, he said.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof. Shibli Rubayat-Ul-Islam said after the bridge, two listed companies that had once ceased trading attracted Chinese investors for a takeover.

The bond market is removing its barriers and should be supported by policies, he said, adding that the capital market welcomes entrepreneurs and investors to fill the gap in needed investments.

After the main presentation, the program also included a panel discussion moderated by veteran journalist Mozammel Haque.

The expert panel included Dhaka Stock Exchange Managing Director Tarique Amin Bhuiyan, Chittagong Stock Exchange Chairman Asif Ibrahim, Brac Bank Managing Director and Bangladesh Bankers Association Chairman Selim RF Hussain, and Managing Director of Apex Footwear and Deputy Chairman of Bangladesh Association of Listed Companies, Syed Nasim Manzur.

They introduced the key benefits of the Padma Bridge as well as its potential role and underlying economic opportunities for Bangladesh’s capital market in line with the country’s broader economic development, aiming to achieve the status of upper-middle-income countries by 2030.

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