Bangladesh targets up to $1 billion in inaugural foreign-currency sovereign bond issue

Bangladesh is preparing a maiden foreign-currency sovereign bond issuance expected to generate between $500 million and $1 billion, according to a senior government source. JPMorgan Chase & Co. has been appointed as the lead manager, and the proposal still requires the sign-off of Prime Minister Tarique Rahman. The backdrop of rising global borrowing costs, following recent U.S. Federal Reserve rate hikes, is shaping the government's cautious approach to pricing.

Tanvir Shahriar Ghani, who oversees the bond issuance committee, said investor appetite appears robust after meetings with institutional investors in Europe and New York. He declined to provide further transaction specifics, citing unresolved legal issues. The central bank first floated the idea of foreign-currency debt in 2012, but the plan never materialised until now.