Long-term innovative financing and a vibrant bond market are crucial for sustainable infrastructure development in Bangladesh, speakers said at a webinar today.

Dhaka Chamber of Commerce and Industry (DCCI) and the commerce ministry organised the webinar on "Bridging the infrastructure gap through credit solutions in Bangladesh" under the Bangladesh Trade and Investment Summit 2021.

Addressing the programme as chief guest, Salman F Rahman, private industry and investment adviser to the prime minister, said all kinds of financing including infrastructure financing have been improved in Bangladesh.

"But what we need is to create a vibrant structured bond market in our country. Right at this moment, there is huge liquidity in the banking sector and if we could have been able to divert this liquidity into bonds that would have been helpful," he said.

Md Nojibur Rahman, chairman of Capital Market Stabilisation Fund, said a boom of infrastructural development is going on now in Bangladesh. "We need capital and finance but domestic finance is not enough."

DCCI President Rizwan Rahman said Infrastructure is a critical enabler of compounding industrialization and economic development. Substantial investment in infrastructure is needed to accelerate trade and economic growth.

To improve infrastructural competitiveness, investment is being made in wide-ranging infrastructure projects though they are relatively inadequate, he said.

Andrew Bainbridge, chair of Private Infrastructure Development Group (PIDG), said mobilizing the private sector is a very critical enabler of growth.

Yukiko Omura, chair of GuarantCo, said they are in Bangladesh to assist to develop the local capital market and provide credit solutions to finance infrastructure projects that help boost economic growth and improve the quality of people's lives and alleviate poverty in line with the SDG goals.

Abul Kalam Azad, executive director of Bangladesh Bank, said, "We need more infrastructural funding as it is the backbone of the country's development. We have to build our own capacity. We can try long term bonds in the capital market."

Muhit Rahman, managing director of Standard Chartered Bangladesh, said large infrastructure projects need financing of 12-15 years.

"Our debt to GDP ratio is around 39 per cent. There are ample opportunities for Bangladesh to avail foreign currency solutions. We need to focus on attracting commercial loans and bond investments. The domestic source is not enough, it will have to have a mix of local and foreign currency solutions."

Ahsan Khan Chowdhury, chairman and chief executive officer of PRAN-RFL Group, said Bangladesh needs alternative financing and funding for infrastructure development and the private sector. "We need to raise bonds in the international market."  

Nishant Kumar, managing director of GuarantCo Asia, and Nuher Latif Khan, managing director of Technaf Solartech, also spoke at the event.