The Securities and Exchange Commission on Wednesday approved the prospectus of the Bangladesh Fund, a Tk 5,000-crore open-ended mutual fund, opening the way for it to go for public offering in a bid to ease the liquidity crisis of the capital market.
'As the commission approved the prospectus of the Bangladesh Fund, it can now go for public offering,' said SEC executive director Saifur Rahman, adding, 'The public portion of the fund is Tk 3,500 crore, and it may ease the liquidity crisis prevailing in the market.'
The sponsors' portion of the fund is Tk 1,500 crore, of which Tk 500 crore is invested by the prime sponsor, the Investment Corporation of Bangladesh. Of the rest of the portion, Sonali Bank pitched in Tk 300 crore, Janata Bank Tk 200 crore, Agrani Bank Tk 200 crore, Rupali Bank Tk 100 crore, Bangladesh Development Bank Ltd Tk 100 crore, and Shadharan Bima Corporation Tk 100 crore.
As per a government directive, the ICB and the seven other state-owned financial institutions on March 6 declared formation of the Bangladesh Fund worth Tk 5,000 crore in a bid to stabilise the unsteady capital market.
On May 5, the SEC approved the trust deed of the fund with Tk 500 crore in hand as, except the ICB, no other sponsor had deposited their portion by that time.
The SEC on Wednesday also approved the prospectus of Bangladesh Fixed Income Fund, a Tk 500 crore open-ended mutual fund sponsored by Sonali Bank, Janata Bank, Eastern Bank, and the ICB Unit Fund.
Tk 200 crore of the fund is invested by the sponsors. Of the rest, Tk 250 crore will be collected from public offering and Tk 50 crore from issuing placement shares.
Race Asset Management will be the fund manager.
'Both the fund are already in operation,' said Saifur Rahman.
Source : New Age
