The first-ever international bond offering from
Bangladesh has highlighted that investors are searching for
more diversified Asian credits. But the high yield bonds, sold
by Bangladeshi telecommunications company Banglalink, were
complicated by local regulations and rules on private
Bangladesh is a rare sovereign that
hasn’t yet tapped the international bond markets.
Banglalink’s five-year offering was an opportunity
for investors to diversify beyond Chinese and Indonesian
issuers that dominate Asia’s high yield market,
although the lack of comparables and a sovereign curve prompted
increased scrutiny of the credit.
But the offering was complicated by local regulations such
as currency controls, as well as rules on private placements.
Because the sovereign had no prior experience in the
international debt capital markets domestic regulators needed
to be educated...