Swisscontact to help RMG firms raise capital market financing

Farzana Amin, team leader of Swisscontact’s Progress project, said the organisation aims to develop several RMG companies as role models over the coming year.

Bangladesh’s RMG sector developed its support systems gradually as the industry grew and recurring problems were addressed. Photo: Rajib Dhar

Swisscontact, an international development organisation, has announced plans to offer advisory and technical support to promising ready-made garment (RMG) companies looking to raise long-term financing through Bangladesh’s capital market.

Speaking at a workshop today (9 September), Farzana Amin, team leader of Swisscontact’s Progress project, said the organisation aims to develop several RMG companies as role models over the coming year, guiding them through the process of entering the capital market.

She was speaking at a workshop titled “Expanding RMG’s Financing Horizons: Opportunities in the Capital Market”, jointly organised by the Dhaka Stock Exchange (DSE) and Swisscontact at the DSE Training Academy.

“RMG companies need to consider capital market-based financing alongside bank loans,” Farzana said, adding that Swisscontact plans to provide end-to-end support to companies interested in accessing the market.

DSE Managing Director Nuzhat Anwar said the capital market should be developed as a major source of long-term financing for private-sector businesses rather than being viewed only as an investment platform.

She stressed the need to expand financing options beyond equities and initial public offerings (IPOs), particularly through the bond market, and called for reviewing existing policy and regulatory constraints, including the use of IPO proceeds and opportunities for refinancing.

BKMEA Deputy Secretary Md Harunur Rashid said industrial companies remain heavily dependent on bank financing, which often limits their ability to raise sufficient funds for business expansion.

He said bringing viable companies to the capital market could help them expand operations, create employment and contribute to economic growth. However, maintaining sustainable business growth after listing would be essential to preserving investor confidence.

BMBA President and LankaBangla Investments CEO Iftekhar Alam discussed the process of raising long-term capital under the new listing regulations.

He explained the eligibility requirements for main-board IPOs and SME-board qualified investor offers (QIOs), company valuation, listing procedures, use of raised funds, subscription, share allocation and lock-in requirements.

DSE General Manager of the Market Development Division Saiyid Mahmud Zubayer presented an overview of the country’s capital market, DSE’s market infrastructure and technological capabilities, and the available equity and debt financing options.

He highlighted IPOs, QIOs, the SME platform, the bond market and direct listing as potential avenues for companies seeking funds for expansion. He also discussed how capital market participation can strengthen corporate governance and enhance a company’s credibility.

DSE Chief Technology Officer Md Asifur Rahman said the exchange is providing advisory services and one-to-one counselling to entrepreneurs interested in entering the capital market.

Swisscontact Inspire project Team Leader Bidowra Tahmin Khan said the organisation would work with the DSE, BSEC and other stakeholders to provide advisory and technical assistance to promising RMG and textile companies.

She said Swisscontact has been working with the RMG and textile sectors for around two decades on compliance, skills development and green transition, and plans to use that experience to support companies seeking capital market financing. Swisscontact Bangladesh Deputy Country Director Syeda Israt Fatima and senior officials from the DSE, along with representatives of leading BKMEA member companies, attended the workshop.

Source: The Business Standard