SCB emerges top syndicated lender
Tuesday, 8 September 2009
FE Report
Standard Chartered Bangladesh has emerged as the country's top syndicated lender as it controls as much as 60 per cent slice of such portfolio, the bank said Monday.
The UK-based bank said it has arranged more than Tk 102 billion of syndication and structured finance facilities since 1997.
"This is quite remarkable given the number of banks that are actively engaged in syndications," the bank said in a prepared statement for the FE.
The bank, which has robust presence across Asia, has established itself as the leading bank in syndicated debt financing in Bangladesh.
Bank officials said the Standard Chartered Bank (SCB) as the joint mandated lead arranger has also closed the first ever unsecured long term offshore loan, arranged the largest debt financing for any corporate in Bangladesh.
It was mandated for a Tk 3.0 billion asset backed-securitisation transaction for a leading microfinance institution.
Alamgir Morshed, Head of Standard Chartered Global Markets in Bangladesh, said the latest deal will be the first ever long-term asset backed securitisation, and will go a long way to add depth and liquidity to the market.
"It highlights the Banks commitment to sustainable finance, and in particular SCB's efforts to help the Micro Finance sector in Bangladesh," he added.
The bank has also been faring well in the area of traditional treasury business since the government has eased restrictions on foreign exchange and interbank trading activity in the mid 90's.
The local currency (Taka) was declared convertible for current account transactions and since then their treasury activity in the banking sector has taken off.
"We've changed the concept of conventional treasury business in Bangladesh by redefining it as 'markets business'."
The state-of-the-art international standard dealing room of Standard Chartered Bank Bangladesh now boasts having specialised desks for FX Trading, Fixed Income Trading, Corporate and Institutional Sales, Asset-Liability Management and Capital Markets.
SCB has also been one of the pioneers in developing interbank Fx trading, by actively participating in the interbank market and passing on the trading culture and expertise to the local banks as well.
By 1999 total foreign exchange transaction volume had reached US$ 1.2 billion per month. By then the local currency swap market had become active, and was widely accepted as an alternative source of liquidity management.
Officials said money market achieved depth through instruments like reverse repo, sales culture has been popularised for foreign exchange in the institutional base, loan syndication is instituted as a common tool in debt capital market, and bond origination has seen some light.
Bank officials noted that the British banking giant had been the pioneer of innovation and market development in derivatives and so far, Standard Chartered is the sole bank to have footprint in the derivatives regime.
It imprinted the first mark with currency derivative in 2004 to protect the client from Japanese Yen volatility in the international market.
As commodity business was gaining momentum globally creating remarkable volatility, last year the bank closed the first ever commodity derivative in the country.
It is one of the very few banks with a proper ALM desk, and is equipped with modern dealing systems and highly trained specialists. They have been proactive in sharing knowledge and providing training to the other counterparties in the market.
The ALM desk has played a key hand in participating and developing securities trading, swaps, repo and reverse repo transactions.
Validation of SCB's reliability and good standing in the aftermath of the global financial crisis came when Bangladesh Bank has recently signed custodian services agreement with the bank for their offshore investments.
The bank said it has the most state-of-the-art dealing room in Bangladesh, and this enables them to stay connected globally and provide speed and accuracy in dealing.
The Standard Chartered Global Markets team is structured as an integrated treasury with specialised functional desks on one floor. This enables close cooperation between the different units, and allows the unit to have a better governance structure.
The team in Bangladesh also works closely with other Global Markets teams within the bank in other regional offices. They can very easily draw upon expertise and experience from more advanced markets, in order t o provide the best solutions for their clients.
"I feel now that we are on the path to competing in the big leagues like Dubai and Malaysia. Our Global Markets team is committed to innovation and market development, and are ready to take our market to the next level" said the head of the bank's global markets.
Standard Chartered Bangladesh has emerged as the country's top syndicated lender as it controls as much as 60 per cent slice of such portfolio, the bank said Monday.
The UK-based bank said it has arranged more than Tk 102 billion of syndication and structured finance facilities since 1997.
"This is quite remarkable given the number of banks that are actively engaged in syndications," the bank said in a prepared statement for the FE.
The bank, which has robust presence across Asia, has established itself as the leading bank in syndicated debt financing in Bangladesh.
Bank officials said the Standard Chartered Bank (SCB) as the joint mandated lead arranger has also closed the first ever unsecured long term offshore loan, arranged the largest debt financing for any corporate in Bangladesh.
It was mandated for a Tk 3.0 billion asset backed-securitisation transaction for a leading microfinance institution.
Alamgir Morshed, Head of Standard Chartered Global Markets in Bangladesh, said the latest deal will be the first ever long-term asset backed securitisation, and will go a long way to add depth and liquidity to the market.
"It highlights the Banks commitment to sustainable finance, and in particular SCB's efforts to help the Micro Finance sector in Bangladesh," he added.
The bank has also been faring well in the area of traditional treasury business since the government has eased restrictions on foreign exchange and interbank trading activity in the mid 90's.
The local currency (Taka) was declared convertible for current account transactions and since then their treasury activity in the banking sector has taken off.
"We've changed the concept of conventional treasury business in Bangladesh by redefining it as 'markets business'."
The state-of-the-art international standard dealing room of Standard Chartered Bank Bangladesh now boasts having specialised desks for FX Trading, Fixed Income Trading, Corporate and Institutional Sales, Asset-Liability Management and Capital Markets.
SCB has also been one of the pioneers in developing interbank Fx trading, by actively participating in the interbank market and passing on the trading culture and expertise to the local banks as well.
By 1999 total foreign exchange transaction volume had reached US$ 1.2 billion per month. By then the local currency swap market had become active, and was widely accepted as an alternative source of liquidity management.
Officials said money market achieved depth through instruments like reverse repo, sales culture has been popularised for foreign exchange in the institutional base, loan syndication is instituted as a common tool in debt capital market, and bond origination has seen some light.
Bank officials noted that the British banking giant had been the pioneer of innovation and market development in derivatives and so far, Standard Chartered is the sole bank to have footprint in the derivatives regime.
It imprinted the first mark with currency derivative in 2004 to protect the client from Japanese Yen volatility in the international market.
As commodity business was gaining momentum globally creating remarkable volatility, last year the bank closed the first ever commodity derivative in the country.
It is one of the very few banks with a proper ALM desk, and is equipped with modern dealing systems and highly trained specialists. They have been proactive in sharing knowledge and providing training to the other counterparties in the market.
The ALM desk has played a key hand in participating and developing securities trading, swaps, repo and reverse repo transactions.
Validation of SCB's reliability and good standing in the aftermath of the global financial crisis came when Bangladesh Bank has recently signed custodian services agreement with the bank for their offshore investments.
The bank said it has the most state-of-the-art dealing room in Bangladesh, and this enables them to stay connected globally and provide speed and accuracy in dealing.
The Standard Chartered Global Markets team is structured as an integrated treasury with specialised functional desks on one floor. This enables close cooperation between the different units, and allows the unit to have a better governance structure.
The team in Bangladesh also works closely with other Global Markets teams within the bank in other regional offices. They can very easily draw upon expertise and experience from more advanced markets, in order t o provide the best solutions for their clients.
"I feel now that we are on the path to competing in the big leagues like Dubai and Malaysia. Our Global Markets team is committed to innovation and market development, and are ready to take our market to the next level" said the head of the bank's global markets.