Beximco LPG, Jamuna Oil team up to widen autogas market

Beximco LPG Unit – 1 Ltd entered into an agreement with Jamuna Oil Company Ltd, a subsidiary of Bangladesh Petroleum Corporation, enabling Beximco LPG to setup LPG pumps and commence sales of autogas through the registered filling stations of Jamuna Oil Ltd. The signing ceremony took place at the Chattogram office of Jamuna Oil Company Ltd at Jamuna Bhaban, Agrabad C/A, Chottogram. This agreement will ensure rapid penetration of auto LPG for use in automobiles across Bangladesh.

As per the agreement, Jamuna Oil and Bangladesh Petroleum Corporation will each receive a royalty of Tk 0.50 per liter of LPG that is sold by Beximco LPG through their established auto LPG pumps. Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licenses for auto LPG stations and 25 licenses for Conversion Workshops by the Ministry of Energy and Mineral Resources earlier in 2016, said the release.

The agreement was signed by Md Gias Uddin Ansary, managing director, Jamuna Oil and Mrinal Roy, chief executive officer of Beximco LPG. General Manager Md Masud Karim, deputy general managers Khasru Azad, Md Masudul Islam, Md Jasim Uddin, Abdus Sabur Khan, and assistant general manager Arshad Azgar Choudhuri, among others, attended the event on behalf of Jamuna Oil Company. Mehedi Hasan, general manager, sales and marketing, Tasnuva Choudhury head of business development and Abu Bokor Siddiqui regional sales manager, Chattogram, from Beximco LPG attended the event.

Speaking at the ceremony, Mehedi Hasan GM, sales and marketing, Beximco LPG, said, ‘This agreement with Jamuna Oil Company will stand as a milestone for the rapid progress and development of the automotive fuel sector of the country. Beximco LPG commits delivery of the best quality LPG mix of Propane and Butane to ensure that the fuel reaches the required Octane number and causes no damage to the engine of the vehicle.’

Economy more stable now, says Salman Fazlur Rahman

Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman laid emphasis on diversification of export and reducing the import to stabilise the currency devaluating trend. "Bangladesh's economy is now more stable in any economic indicator. We have to diversify our export. The policy that makes RMG sector as successful, we just have to replicate the policy and initiate it to other sectors," he said.

The adviser said this while speaking at a business luncheon meeting called "Robi presents BMCCI Powerlunch" organised by Bangladesh-Malaysia Chamber of Commerc

e and Industry (BMCCI) at a city hotel. The topic of the meeting is "Anatomy of a Macroeconomic Crisis". Salman Fazlur Rahman said the Bangladesh Bank has taken initiatives to reduce imports at the right time. "When AL-backed government came to power, we have about four thousand MW capacity in electricity but now it has become 22 thousand MW which reveals our potent energy situation," he added.

Malaysian High Commissioner in Dhaka Haznah Md Hashim attended the meeting as the guest of honour while Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Md Jashim Uddin was present as special guest. Executive Director of the Policy Research Institute of Bangladesh Dr Ahsan H Monsur and Country Client and Market Lead of Pwc Bangladesh Mamun Rashid attended as discussants with Syed Almas Kabir, president of Bangladesh- Malaysia Chamber of Commerce and Industry, in the chair. Executive Director of the South Asian Network on Economic Modeling (Sanem) Dr Selim Raihan delivered the key note speech.

Green Sukuk al Istisna’a will give 5.8 per cent return

Beximco Green Sukuk al Istisna’a will give 5.8 per cent or Tk 174 crore as return to its sukukholders for the first six months of the first year (December 23, 2021 to June 22, 2022).

The trustee Investment Corporation of Bangladesh made the decision at a trustee committee meeting. The 5.8 per cent return would be payable on face value of sukuk Tk 100 each. Earlier on July 8, 2021, the BSEC gave approval to BEXIMCO for issuing Tk 3,000 crore Shariah-compliant green Sukuk and the sukuk made debut on January 13 this year.

Beximco Green Sukuk al Istisna’a is issued by Beximco Green-Sukuk Trust as an asset backed Shariah compliant security and the proceeds received from the subscription will be utilised for solar projects of Teesta Solar Ltd and Korotoa Solar Ltd. The tenure of the green Sukuk is five years or 60 months from the issuance date.

The face value of each Sukuk is Tk 100 and the minimum subscription is Tk 5,000 or 50 green Sukuk. The rate of return of the Sukuk is 9 per cent in addition to margin. The margin will be 10 per cent of the difference between base rate (9 per cent) and annual dividend rate declared by BEXIMCO Limited.

The profit of Beximco’s Sukuk will be paid on a semi-annual basis.

Smart Bangladesh on the way

After realising a “Digital Bangladesh”, The government is now working to establish a “Smart Bangladesh”, said the private industry and investment adviser to the prime minister.

The government has various plans to successfully engage in the challenges of the Fourth Industrial Revolution, said Salman F Rahman, private industry and investment adviser to the prime minister."First, we have to learn the coding languages to work with robotics, artificial intelligence, and quantum mechanics. For this reason, we have taken initiatives to teach the primary school students the concepts of coding, which will help them to become skilled programmers in future," said Salman F Rahman in a meeting he attended while visiting the Samsung Research and Development Institute Bangladesh (SRBD) in Dhaka.

"The government has undertaken various programmes under the direction of Prime Minister Sheikh Hasina to take the young generation forward in the information technology sector. We have already realised a 'Digital Bangladesh'. We are now moving towards the establishment of 'Smart Bangladesh'. South Korea has always supported us in these regards," said the adviser to the prime minister.

During the visit, Salman F Rahman expressed his satisfaction upon learning that the young Bangladeshi engineers are working efficiently at the SRBD and thanked the South Korean government and Samsung for the facility. The research centre authorities said young Bangladeshi engineers are also working with a reputation in foreign countries after gaining experience at the centre.

The prime minister's investment adviser called on the South Korean Ambassador to Bangladesh Lee Jang-Keun to help create job opportunities for more young people at the SRBD. At that time, Lee Jang-Keun said the research centre was set up in Bangladesh, like in 14 other countries, on the initiative of the Samsung Group and with the support of the South Korean government. The South Korean ambassador also expressed satisfaction regarding the work of the Bangladeshi researchers employed at the centre. He said with the continuation of good relations with Bangladesh, more Korean companies will come forward to invest in this country and Bangladeshi workers will get job opportunities at their companies.

Salman F Rahman says every industry will be treated like export-oriented factories

Prime Minister's Private Industry and Investment Adviser Salman F Rahman addressed the workshop titled Promoting Occupational Health & Safety for Improving Productivity, jointly organised by FBCCI and ILO at FBCCI as the chief guest and said that the government aims to secure all the industries like export-oriented industries which are producing goods for local market.

The FBCCI has setup a safety council to ensure the professional safety of the industry. The council is working on the basis of national OHS profile and national OHS policy, FBCCI senior vice president informed. 

In his speech, Prime Minister's Private Industry and Investment Adviser  said that "In this connection, the national committee has already inspected 5,200 factories, and the rest of the factories will also be brought under inspection,". He added that many owners were reluctant to start reforms in the garment sector. But now this sector is getting the benefits of decent working environment. In the same way, the pharmaceutical industry of the country has also gained worldwide reputation due to its quality factories.

Gorge Faller, ILO's technical adviser, called for the successful implementation of government policies to make the sector safer. He commented that if the workplace is safe, it is beneficial for both the employer and the worker. He expects Bangladesh should work for the safe and sound workplace so that the world would recognize the "Made in Bangladesh" goods represents safety. Speaking as the special guest, Secretary for Labour and Employment Md Ehsan-E- Elahi said that safety, quality and production are interrelated in the industry. "As the working environment of the factory improves, so does the productivity of the workers and quality of the goods manufactured," he added. The secretary said that the government is working to make Bangladesh free from child labour by 2025.

Beximco Green-Sukuk Al Istisna coming

Twenty banks have subscribed to more than 74% of the private placement amount of Tk2,250 crore of the Beximco Green-Sukuk Al Istisna – the first-ever asset-backed security by a private sector entity in Bangladesh, according to the Dhaka Stock Exchange (DSE). The investments have come from 14-15 December. The rest of the amount has come from brokerage firms, insurance companies, asset management companies, and other corporates.

According to a stockbroker, banks have injected the fresh amount into the Sukuk bond as the central bank has eased the policy for such investment. Due to the Sukuk subscription, the share market fell into a liquidity crisis and that is why indices of both stock exchanges witnessed volatile sessions in the last couple of weeks.


On 27 September this year, the Bangladesh Bank extended till 31 December 2028 the tenure of the capital market special fund for investment in green Sukuk bonds to finance renewable energy, which will not be counted towards a banks' capital market investment limits. On 23 June this year, Beximco Limited secured approval from the Bangladesh Securities and Exchange Commission (BSEC) to launch its Tk3,000 crore Sukuk bond for a five-year tenure. The rest of the amount has come from underwriters and public subscriptions. But Beximco Limited's existing shareholders subscribed only Tk2 crore in the bond.

The Sukuk would be a green one as the company would spend the money on eco-friendly infrastructures. Beximco Limited would expand its textile unit alongside implementing two solar power projects under its power division with the Sukuk money. The Investment Corporation of Bangladesh is the trustee of the Sukuk, while City Bank Capital Resources Ltd and Agrani Equity and Investment Ltd are jointly working as issue managers.

The base rate of the Sukuk was set at 9%, which means investors would be getting a 9% secured annual return. The margin was set at 10% of the difference between the base rate and the annual dividend that Beximco will pay in a specific year.

The margin would be added to the base rate if Beximco's dividend for the specific year surpasses the base rate. If the dividend is lower than the base rate, there would be no negative margin. Investors can gradually convert their Sukuk to Beximco shares over its five-year tenure, but they can only convert a maximum of 20% of the total in a year. Unexercised options to convert in a year can be exercised in the following year as well, along with the current year's option.

Beximco PPE and K2 Logistics signs agreement

Beximco PPE limited and K2 Logistics Bangladesh Limited on 24 November signed an agreement on production and quality consultation.

Japanese Ambassador to Bangladesh Naoki Ito attended the signing ceremony hosted by Beximco Group Chairman ASF Rahman, Beximco Group Director and CEO Syed Naved Husain, and Dr Mohidus Samad Khan, executive director of Beximco PPE Ltd, said a press release. The ceremony was attended virtually by Private Industry and Investment Adviser to Honorable Prime Minister Salman F Rahman, and a member of the Jatiya Sangsad.

Tetsuro Kano, general manager of Itochu Dhaka Office and President of Japanese Association, Hikaru Kawai, the general manager of Marubeni Dhaka Office and President of Japanese Commerce and Industry Association of Dhaka, Yuho Hayakawa, the chief representative of Japan International Cooperation Agency (JICA) Bangladesh Office, Yuji Ando, chief representative of JETRO Dhaka Office, Dr Moazzem Hussain, advisor of K2 Logistics Bangladesh Limited, Ryoma Mitani, executive director of Ken2 Japan, Toshihide Yuda, COO of K2 Logistics Bangladesh Ltd were also present at the event. Guests at the event gave speeches highlighting the importance of Japanese expertise in professional-level inspection and quality control techniques which are of extreme importance in PPE/medical supply chains.

After the signing ceremony at the Beximco PPE Park, the Japanese ambassador moved to Beximco Industrial Park where he visited Beximco Industrial Park. The ambassador was very impressed to see Beximco's fully vertical state of the art Textiles, Garment Manufacturing, and World Largest Modern Sustainable Washing Plant, the press release added. At the Beximco Industrial Park, Naoki Itoalso inaugurated the startup and launch of the World Class State-of-the-Art Tsudakoma Looms, Sizing Machine and Warping Machine which Beximco has sourced from Japan, financed by JICA.