Bangladesh Issues Two New Treasury Bonds, Amends Bond Auction System
Published June 26th, 2007
The Bangladesh government has issued two new treasury bonds of 15-year and 20-year terms. The goal of the latest issue is to attract more investors and activate the country’s secondary bond market, officials say in the capital, Dhaka on Monday.
Besides, the Bangladesh Bank (BB), the country’s central bank, on Monday amended the auction system of the government bonds, officially known as Bangladesh Government Treasury Bonds (BGTBs). The new system will be used beginning in the next fiscal cycle. It is aimed at creating a competitive as well as a vibrant bond market.
Under the new provisions, the auction of all government bonds will be held as per yield-based multiple prices system, popularly known as at par system, instead of the existing discount method to bring dynamism in the bond market.
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