DSE, Swisscontact Explore Capital Market Financing for RMG

The Dhaka Stock Exchange (DSE) PLC and Swisscontact jointly organised a workshop on Wednesday to explore long-term capital market financing opportunities for Bangladesh’s ready-made garment (RMG) sector.

Titled “Expanding RMG’s Financing Horizons: Opportunities in the Capital Market,” the workshop was held at the DSE Training Academy and brought together senior officials from leading member institutions of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), along with key capital market stakeholders.

In her opening remarks, DSE Managing Director Nuzhat Anwar said the capital market was a vital source of long-term financing for economic growth and private-sector expansion.

She stressed the need to move beyond initial public offerings (IPOs) and equity markets and explore bond-market financing. She also called for effective measures to bridge the gap between private-sector financing needs and the capacity of the capital market.

Nuzhat Anwar said the DSE was working to build a transparent and business-friendly market by identifying regulatory barriers and addressing entrepreneurs’ needs.

Farzana Amin, team leader of Swisscontact’s PROGRESS project, said the organisation planned to provide end-to-end support to RMG companies interested in entering the capital market.

She said Swisscontact aimed to develop several model companies over the next year to encourage wider participation in the market.

BKMEA Deputy Secretary Md Harunur Rashid said Bangladeshi industrial enterprises remained heavily dependent on bank loans, which limited their scope for expansion.

He identified the capital market as an alternative source of long-term financing that could accelerate growth and create jobs, provided listed companies maintained sustainable business practices to preserve investor confidence.

Iftekhar Alam, president of the Bangladesh Merchant Bankers Association (BMBA) and chief executive officer of LankaBangla Investments, gave a presentation on listing procedures, equity capital raising, valuation and qualification requirements for Main Board IPOs and SME Board Qualified Investor Offers (QIOs).

Sayeed Mahmud Zubaer, general manager of the DSE’s Market Development Division, presented an overview of capital market structures, DSE infrastructure, bond markets, direct listing opportunities and the corporate governance benefits of listing.

During the closing session, DSE Chief Technology Officer Dr Md Asifur Rahman said the exchange was offering one-to-one counselling and advisory services to help entrepreneurs navigate the listing process.

Bidowra Tahmin Khan, team leader of Swisscontact’s INSPIRE project, said Swisscontact would coordinate with the DSE, the Bangladesh Securities and Exchange Commission (BSEC) and other stakeholders to provide technical and advisory support to promising RMG and textile companies.

Swisscontact Bangladesh Deputy Country Director Syeda Ishrat Fatima, along with senior representatives from the DSE and partner organisations, also attended the workshop.