PRAN-RFL Group Director Uzma Chowdhury has called for introspection and course correction in Bangladesh’s developing bond and Sukuk market, urging stakeholders to learn from past missteps and clear the “fog” of procedural ambiguity holding back progress.
Speaking at the seminar “Unveiling Bangladesh’s Bond and Sukuk Market: Revenue Status, Infrastructure Implementation and Islamic Money Market Development”, jointly organised by the Bangladesh Securities and Exchange Commission (BSEC) and the Dhaka Stock Exchange (DSE), Uzma reflected candidly on her company’s pioneering, and at times frustrating, experience as an early issuer.
“It’s been two or three years since we issued our first Sukuk. Let’s not make the same mistakes again, even by mistake,” she said. “We must identify our problems, own them, fix them and lift the fog that still clouds this market.”
Uzma highlighted delays in the approval process as a major bottleneck. “Our assets sat idle for over a year awaiting depreciation valuation and even then, the value we received didn’t meet Sukukholders’ expectations. We had to bring in fresh assets just to qualify.”
She described the first issuance as a learning curve, “regrettable in its delays, but invaluable in its lessons.”
The second attempt, she noted, was markedly smoother: “Progressive from day one. As an issuer, I now see clearly what’s needed: strong, transparent trustee requirements that protect investors while enabling issuers.”
Another concern she raised was counterparty risk. “Our first Sukuk was placed with an Islamic bank, whose current operational stability is now in question. That’s alarming. We need BSEC to clearly define trustee responsibilities, not just on paper, but in practice, so we know exactly who safeguards our investors when we launch new instruments.”
Drawing a vivid analogy, Uzma compared Bangladesh’s capital market journey to a child learning to walk: “Yes, we stumble. Yes, we get bruised. But the point is, we’ve started walking. Now we must learn to walk strong, walk straight, and never stop.”
She warned against abandoning financial instruments after their debut. “We launched a bond on the Alternative Trading Board but after the first issuance, trading went silent. If we don’t keep these tools active, they’ll rust. And with them, our ambitions.”
Her closing message was one of collective responsibility and resolve: “Even if we make mistakes, let’s not repeat them. Let’s name the problems, fix them, and move forward – together. Let’s clear the haze. Let’s build on strong footing. That’s our agenda. That’s our future.”