** Money is abroad as shared corruption ** Rising insecurity in Rohingya camps ** Investors lose Tk 10,261cr at DSE in one week ** 8 detained over Friday’s deadly attack ** T20 WC Super 12 Tigers seek winning start against Lanka ** Weak supply policy behind health sector’s anarchy ** Muhibullah murder ‘Killing squad’ man among 4 arrested ** Communal violence in Cumilla Iqbal, 3 others remanded ** Japan's Princess Mako celebrates final birthday ** Customers are seen buying vegetables at Gopibagh kitchen market in the capital on Saturday. Vegetable prices remain sky-high despite ample supply. ** Payra Bridge opens to traffic today ** Tripura Muslim body alleges attacks on mosques ** Soybean meal export ban yet to impact on poultry price ** Classes in schools to increase from Jan: Dipu Moni ** Other than looters and high government functionaries, all are marginalised ** A large crowd gather at the site of derailed freight train in Dhaka's Kawran Bazar area on Friday. ** Queen back at Windsor after hospital stay ** The Hindu, Buddhist and Christian Unity Council stage a torch procession in the capital's Shahbagh intersection on Friday protesting communal attacks parts of Bangladesh during the Durga Puja celebrations. ** Killings in refugee camp to disrupt repatriation: FM ** 7 killed in gun attack on Ukhiya Rohingya camp ** Minority council opt for mass protests ** No law to recruit judges in higher courts ** 1 injured die in DMCH ** Prime suspect of communal violence brought to Cumilla ** Malaysia lifts migrant worker ban **

New fund raising in capital market may help boost support for SDGs

13 October 2021 Editorial Desk
New fund raising in capital market may help boost support for SDGs

The stock market, insurance and pension funds could actively contribute to financing the roughly $928 billion needed by Bangladesh to achieve its Sustainable Development Goals (SDGs) by 2030 as bank lending alone is not enough, experts said at a webinar on Monday in the capital. The Bangladesh Association of Publicly Listed Companies (BAPLC) held the event with stakeholders taking part in it. We would say they have rightly pointed out that the banking sector alone cannot supply the long-term financing needed to achieve SDGs as it puts undue pressure on the sector. Besides the stock market, insurance and pension funds, the bond market, mutual funds and secondary stock markets that have also become more vibrant can sufficiently share the load.

We find that the domestic stock market has a variety of fundraising boards, such as the alternative trading board and SME board aside from the main board. The market is also bringing new products so that the stock market can be a strong source of sustainable development financing.

DSE leaders said Bangladesh would need around Tk 78,92,000 crore to achieve the SDGs which makes about Tk 480,000 crore annually for this period. This fund can be financed from various stock market products. But the question is what's to be the new mechanism. The banking sector is suffering from a high rate of non-performing loans and unable to provide adequate financing, so also the insurance sector which is not a viable option but the stock market has a huge potential.

The point here is that when people are confident about the market, it can make big contributions as proven in recent times. The DSE's market capitalisation rose by more than Tk 220,000 crore in the last one year. So it is clear a huge financing demand can be met by the stock market if well performing private sector companies come to raise funds. In our view there is a huge opportunity to enlarge the number of listed companies from 390 to increase the size of the funds. However safety of the funds is the biggest concern. So proper governance in the secondary capital market must be ensured to keep scam masters under control. We are sure if properly managed, new sources of financing may emerge to help sufficiently fund projects that are aimed to achieve the sustainable development goals.

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