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Trade and Investment Opportunities Abrar A. Anwar Managing Director & Head of Wholesale Banking 29-March-2014.

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Presentation on theme: "Trade and Investment Opportunities Abrar A. Anwar Managing Director & Head of Wholesale Banking 29-March-2014."— Presentation transcript:

1 Trade and Investment Opportunities Abrar A. Anwar Managing Director & Head of Wholesale Banking 29-March-2014

2 2 Standard Chartered: Bangladesh Universal Banking in Bangladesh  Awarded “The Best Foreign Commercial Bank in Bangladesh” by FinanceAsia in 2009-2013; “Bank of the Year” at the Bankers Awards 2012-2013  Over 108 years of presence  Largest product suite  Highly experienced team  Numerous industry first deals  Pioneered several products in the market  Rated AAA by rating agencies  Largest Foreign Bank in Bangladesh  Capital base of USD340m (Dec 31, 2013)  Asset base of USD3.4bn (Dec 31, 2013) Capital Markets Corporate Finance Islamic Banking Consumer Banking SME Banking Transaction Banking Financial Markets Standard Chartered Bank and or its affiliates ("SCB”) makes no representation or warranty of any kind, express, implied or statutory regarding this document or any information contained or referred to on the document. The information in this document is provided for information purposes only.

3 3 Standard Chartered: Bangladesh Here for Clients Syndicated Loan Facility Lead Arranger USD74m Orascom Syndicated Term Loan for telecom operator Co-Arranger USD355m Grameenphone Syndicated Loan Facility with USD145m Backstop for telecom operator Lead Arranger USD115 m Axiata ECA backed Term Loan for second largest power producer USD193m Ashuganj Power Station Financial Advisor for 700MW Power Plants. USD400m Summit Bibiyana Syndicated Term Financing for procurement of aircrafts for the national carrier Lead Arranger USD356m Biman Bangladesh Syndicated Term Loan for expansion project for international poultry player USD47m CP Bangladesh Largest multi-currency Syndicated term financing for a local corporate Co-Arranger USD 115m Structured short term FCY financing against G’-Sec for commercial banks USD120m Janata/Agrani Bank Short Term Loan Syndication for State- owned petroleum importer/distributor Co-Arranger USD400m BPC Standard Chartered Bank and or its affiliates ("SCB”) makes no representation or warranty of any kind, express, implied or statutory regarding this document or any information contained or referred to on the document. The information in this document is provided for information purposes only. BSRM

4 4 Bangladesh: At a Glance Sovereign Rating: LT BB- and ST B (S&P) & Ba3 (Moody’s). Stable Outlook” in the past 4 years External Debt: : USD 26.1 Bn (89% Long Term & Concessional). Strong debt service capability. Floating Currency Exchange Rate; Limited Capital Account Convertibility Financial Intermediaries: 56 Banks, 31 NBFI, 62 Insurance Companies GDP steadily and consistently growing during the last 30+ years Population of 154.7 M of which 54.52% is of working age Strategically located between India & China, with access to Indian Ocean through Bay of Bengal 37th Fastest GDP Growth Country in 2012 8 th Largest Remittance Recipient 65 th Largest Goods Exporter 57 th Largest Goods Importer Source: World Bank and WTO

5 5 Debt Capital Market Opportunities Short Term Short Term Loan Syndication for Corporate Funded Risk Participation for Trade Finance Short Term Finance for Oil Import of Bangladesh Petroleum Corporation Medium Term Medium Term Loan Syndication for Corporate Structured Export Finance - ECA Backed Financing Islamic Finance for Corporate Energy & Power Sector Projects Long Term Infrastructure Finance Sovereign Bonds & Government Treasury Bonds

6 6 Equity Investment Routes Foreign Institutional Investors (Portfolio Investment Scheme) FIIs can directly invest in listed securities & pre- IPOs Institutional Investors can invest simply by opening NITA (Non-Resident Investor’s Taka Account) with a bank No other regulatory registration required No prior approval required from SEC or central bank Sale processed are freely remittable without prior approval Buy/Sell on exchange through registered broker No investment limit except for bank company share up to10% Foreign Direct Investments (FDI) / PE Registration required with Board of Investment (BOI) All sectors are open except for a few reserved government sectors ( Arms, Security printing, Atomic Energy etc.,) Exit available through sale to other non-resident investors in foreign currency Repatriation of sale proceeds subject to tax and prior approval of the Central Bank

7 7 No limitations in foreign ownership. Ownership Full repatriation of profit & dividend without prior approval of central bank. Repatriation Legal Protection against: (a) Nationalization, (b) Expropriation, (c) Non- discriminatory Treatment. Protection of Investors Concessionary duty on imported capital machineries while no import duty for 100% export oriented industry. Fiscal/ non-fiscal and infrastructural facilities for investment in Export Processing Zone (EPZ ). Incentives for Exporters For countries with Bi-lateral agreements. Avoidance of Double Taxation Exemption on royalties, technical know-how fees received, dividend income, capital gain and interest on foreign loans under certain conditions. Usually 5-7 years, 15 years for electric power generation Tax Exemption Incentives for Foreign Direct Investors

8 8 Export processing Zones (EPZ) Brands made by EPZ

9 9 Thrust Sectors Light Engineering Pharmaceuticals CeramicsFrozen FoodAgro Based Power Infrastructure Textile & Garments ICTLeather & Leather GoodsElectronic Goods

10 10 Bangladesh – India Corridor at a Glance USD 4.9B / year USD 0.5B / Year 15% of BD’s import is from India USD 135M of FDI originated from India over last 5 years (2.43% of total FDI) Total export (2012-13) to India was USD 564M (2.09% of total export). Diversified product range mainly from food and RMG Total import (2012-13) from India was USD 4.9B (16.3% of total import). Majority (27%) underlying goods are cotton / yarn etc. Export performance to India could not reach full potential due to various tariff and non tariff trade barriers Initiative has been taken to explore India as BD’s prime export destination Indian Government has allowed 146 items’ duty free export from Bangladesh (90% of which is garments items)

11 11 Bangladesh – India Corridor at a Glance Company NamePresence in BD TCS Reliance ONGC Infosys HDFC Bank Coal India ICICI Bank SBI  HDFC Wipro Tata Motors  Bharti Airtel  Larsen Sun Pharma  HCL Tech NTPC Axis Bank IOC Cairn India Bajaj Auto Kotak Mahindra M&M Maruti Suzuki Ultratech Cement 

12 Thank You

13 13 Disclaimer This document has been produced for information and discussion purposes only and does not constitute either an offer to sell or the solicitation of an offer to buy any security or any financial instrument or enter into any transaction or provide any services. This document must not be redistributed or forwarded to any other person other than you without the express written consent of Standard Chartered Bank (“SCB”). No representation or warranty (whether express or implied) is given by SCB with respect to the completeness or accuracy of any information contained in this document, or that the information is free from error or omission. SCB accepts no liability and will not be liable for any act done or omission made or any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of this document and the information contained herein, howsoever arising, including any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of any document or any part thereof or any contents or associated services. No representation is made that the information contained herein is appropriate for use in any location, or that any products, investments and/or services discussed herein are available or appropriate for sale or use in any jurisdiction, or by any investors or counterparties. Products and services are available at the sole discretion of SCB, subject to the individual terms and conditions on which they are offered and such products and services may be withdrawn or amended at any time without notice. The full range of products or services may not be available to all customers, and fees, commissions or other charges may apply to certain products or services. No information contained herein constitutes tax or legal advice. You are advised to exercise your own independent judgment (with the advice of your professional tax, legal or other advisers as necessary) with respect to the risks and consequences of any matter contained herein. All rights reserved. © Standard Chartered Bank 2012. Copyright in all materials, text, articles and information contained herein is the property of, and may only be reproduced with permission of an authorised signatory of, SCB. Copyright in materials created by third parties and the rights under copyright of such parties are hereby acknowledged. Copyright in all other materials not belonging to third parties and copyright in these materials as a compilation vests and shall remain at all times copyright of SCB and should not be reproduced or used except for business purposes on behalf of SCB or save with the express prior written consent of an authorised signatory of SCB.

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