Trade and Investment Opportunities

Abrar A. Anwar Managing Director & Head of Wholesale Banking 29-March-2014

Standard Chartered: Bangladesh

Universal Banking in Bangladesh

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

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Over 108 years of presence

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Largest product suite

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Highly experienced team

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Numerous industry first deals

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Pioneered several products in the market

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Rated AAA by rating agencies

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Largest Foreign Bank in Bangladesh

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Capital base of USD340m (Dec 31, 2013)

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Asset base of USD3.4bn (Dec 31, 2013) Financial Markets Transaction Banking Capital Markets SME Banking Corporate Finance Islamic Banking Consumer Banking

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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.

Standard Chartered: Bangladesh

Here for Clients Ashuganj Power Station USD193m ECA backed Term Loan for second largest power producer Janata/Agrani Bank USD120m Structured short term FCY financing against G’-Sec for commercial banks BSRM USD 115m Largest multi-currency Syndicated term financing for a local corporate Co-Arranger CP Bangladesh USD47m Syndicated Term Loan for expansion project for international poultry player Biman Bangladesh USD356m Syndicated Term Financing for procurement of aircrafts for the national carrier Lead Arranger Orascom USD74m Syndicated Loan Facility Lead Arranger Grameenphone USD355m Syndicated Term Loan for telecom operator Co-Arranger BPC USD400m Short Term Loan Syndication for State owned petroleum importer/distributor Co-Arranger Axiata USD115 m Syndicated Loan Facility with USD145m Backstop for telecom operator Lead Arranger Summit Bibiyana USD400m Financial Advisor for 700MW Power Plants .

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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.

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 8 th Largest Remittance Recipient 65 th Largest Goods Exporter 57 th 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 5

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 6

Incentives for Foreign Direct Investors Ownership

• No limitations in foreign ownership.

Repatriation

• Full repatriation of profit & dividend without prior approval of central bank.

Protection of Investors Incentives for Exporters

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

• 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 ).

Avoidance of Double Taxation

• For countries with Bi-lateral agreements.

Tax Exemption

• 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 7

Export processing Zones (EPZ) 8 EPZs 3

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Best cost effective zone globally ranked by FDI magazine Asia’s low cost production base Ranked as 9

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most potential Free Zone of Future (CEPZ) USD 2.5 Bn investment so far

EPZ Performance

400 350 300 250 200 150 100 50 0 2005-06 2006-07 2007-08 Exports from EPZ, US$mn (RHS) 2008-09 2009-10 2010-11 2011-12 Investment in EPZ, US$mn (LHS) 4500 4000 3500 3000 2500 2000 1500 1000 500 0

Brands made by EPZ

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Thrust Sectors

Power Textile & Garments Infrastructure Pharmaceuticals ICT Leather & Leather Goods Electronic Goods Light Engineering Agro Based Ceramics Frozen Food

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Bangladesh – India Corridor at a Glance

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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) USD 0.5B / Year USD 4.9B / year

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Bangladesh – India Corridor at a Glance

Presence in BD Company Name

TCS 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      11

Thank You

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