Trade and Investment Opportunities

Abrar A. Anwar

Managing Director & Head of Wholesale Banking

29-March-2014

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Standard Chartered: Bangladesh

Universal Banking in Bangladesh

Awarded “The Best Foreign Commercial Bank in Bangladesh” by FinanceAsia in 2009-2013; “Bank of the Year” at the Bankers Awards 2012-2013

Over 108 years of presence

Largest product suite

Highly experienced team

Numerous industry first deals

Pioneered several products in the market

Rated AAA by rating agencies

Largest Foreign Bank in Bangladesh

Capital base of USD340m (Dec 31, 2013)

Asset base of USD3.4bn (Dec 31, 2013)

Capital Markets Corporate

Finance

Islamic Banking

ConsumerBanking

SME Banking

Transaction Banking

Financial Markets

Standard Chartered Bank and or its affiliates ("SCB”) makes no representation or warranty of any kind, express, implied or statutory regarding this document or any information contained or referred to on the document. The information in this document is provided for information purposes only.

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Standard Chartered: BangladeshHere for Clients

Syndicated Loan Facility

Lead Arranger

USD74m

Orascom

Syndicated Term Loan for telecom operator

Co-Arranger

USD355m

Grameenphone

Syndicated Loan Facility with USD145m Backstop for telecom

operator

Lead Arranger

USD115 m

Axiata

ECA backed Term Loan for second largest power producer

USD193m

Ashuganj Power Station

Financial Advisor for 700MW Power Plants.

USD400m

Summit Bibiyana

Syndicated Term Financing for procurement of aircrafts for the

national carrierLead Arranger

USD356m

Biman Bangladesh

Syndicated Term Loan for expansion

project for international poultry

player

USD47m

CP Bangladesh

Largest multi-currency Syndicated term

financing for a local corporate

Co-Arranger

USD 115m

Structured short term FCY financing against G’-Sec for

commercial banks

USD120m

Janata/Agrani Bank

Short Term Loan Syndication for State-

owned petroleum importer/distributor

Co-Arranger

USD400m

BPC

Standard Chartered Bank and or its affiliates ("SCB”) makes no representation or warranty of any kind, express, implied or statutory regarding this document or any information contained or referred to on the document. The information in this document is provided for information purposes only.

BSRM

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Bangladesh: At a Glance

• Sovereign Rating: LT BB- and ST B (S&P) & Ba3 (Moody’s). Stable Outlook” in the past 4 years

• External Debt: : USD 26.1 Bn (89% Long Term & Concessional). Strong debt service capability.

• Floating Currency Exchange Rate; Limited Capital Account Convertibility

• Financial Intermediaries: 56 Banks, 31 NBFI, 62 Insurance Companies

• GDP steadily and consistently growing during the last 30+ years

• Population of 154.7 M of which 54.52% is of working age

• Strategically located between India & China, with access to Indian Ocean through Bay of Bengal

37th Fastest GDP Growth Country in

2012

8th Largest Remittance Recipient

65th Largest Goods

Exporter

57th Largest Goods

Importer

Source: World Bank and WTO

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Debt Capital Market Opportunities

Short Term• Short Term Loan Syndication for Corporate

• Funded Risk Participation for Trade Finance

• Short Term Finance for Oil Import of Bangladesh Petroleum Corporation

Medium Term• Medium Term Loan Syndication for Corporate

• Structured Export Finance - ECA Backed Financing

• Islamic Finance for Corporate

• Energy & Power Sector Projects

Long Term• Infrastructure Finance

• Sovereign Bonds & Government Treasury Bonds

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Equity Investment Routes

Foreign Institutional

Investors(Portfolio

Investment Scheme)

• FIIs can directly invest in listed securities & pre-IPOs

• Institutional Investors can invest simply by opening NITA (Non-Resident Investor’s Taka Account) with a bank

• No other regulatory registration required• No prior approval required from SEC or central

bank • Sale processed are freely remittable without

prior approval• Buy/Sell on exchange through registered broker• No investment limit except for bank company

share up to10%

Foreign Direct Investments

(FDI) / PE

• Registration required with Board of Investment (BOI)

• All sectors are open except for a few reserved government sectors ( Arms, Security printing, Atomic Energy etc.,)

• Exit available through sale to other non-resident investors in foreign currency

• Repatriation of sale proceeds subject to tax and prior approval of the Central Bank

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•No limitations in foreign ownership.

Ownership•Fu

ll repatriation of profit & dividend without prior approval of central bank.

Repatriation

•Legal Protection against: (a) Nationalization, (b) Expropriation, (c) Non-discriminatory Treatment.

Protection of Investors

•Concessionary duty on imported capital machineries while no import duty for 100% export oriented industry.

•Fiscal/ non-fiscal and infrastructural facilities for investment in Export Processing Zone (EPZ ).

Incentives for Exporters

•For countries with Bi-lateral agreements.

Avoidance of Double Taxation

•Exemption on royalties, technical know-how fees received, dividend income , capital gain and interest on foreign loans under certain conditions.

•Usually 5-7 years, 15 years for electric power generation

Tax Exemption

Incentives for Foreign Direct Investors

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Export processing Zones (EPZ)

8 EPZs

3rd Best cost effective zone globally ranked by FDI magazine

Asia’s low cost production base

Ranked as 9th most potential Free Zone of Future (CEPZ)

USD 2.5 Bn investment so far

Brands made by EPZ

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-120

50

100

150

200

250

300

350

400

0

500

1000

1500

2000

2500

3000

3500

4000

4500EPZ Performance

Exports from EPZ, US$mn (RHS) Investment in EPZ, US$mn (LHS)

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Thrust Sectors

Light Engineering

Pharmaceuticals

Ceramics Frozen Food Agro Based

Power Infrastructure Textile & Garments

ICT Leather & Leather Goods Electronic Goods

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Bangladesh – India Corridor at a Glance

USD 4.9B / year

USD 0.5B / Year

• 15% of BD’s import is from India

• USD 135M of FDI originated from India over last 5 years

(2.43% of total FDI)

• Total export (2012-13) to India was USD 564M (2.09% of

total export). Diversified product range mainly from food

and RMG

• Total import (2012-13) from India was USD 4.9B (16.3% of

total import). Majority (27%) underlying goods are cotton /

yarn etc.

• Export performance to India could not reach full potential

due to various tariff and non tariff trade barriers

• Initiative has been taken to explore India as BD’s prime

export destination

• Indian Government has allowed 146 items’ duty free

export from Bangladesh (90% of which is garments items)

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Bangladesh – India Corridor at a Glance

Company Name Presence in BDTCS  Reliance  ONGC  Infosys  HDFC Bank  Coal India  ICICI Bank SBI HDFC  Wipro  Tata Motors Bharti Airtel Larsen  Sun Pharma HCL Tech  NTPC  Axis Bank  IOC  Cairn India  Bajaj Auto  Kotak Mahindra  M&M  Maruti Suzuki  Ultratech Cement

Thank You

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