RBIMCO - Royal Bengal Investment Management Company Ltd

Why BGFI?

  • BGFI is the single highest credit quality available in Bangladesh
  • The BGFI market is the single largest asset class in Bangladesh with total outstanding debt of 35bn in BDT equivalent
  • The BGFI asset class is the only asset class that can offer investors a choice of durations ranging from 91 days to 20 years. Therefore investors can match a variety of liabilities and income streams needed
  • BGFI assets accrue interest daily and there are no penalties of any nature for the early sale of the asset
  • BGFI assets provide substantial capital gain opportunities in a falling interest rate environment and those capital gains are tax free
  • BGFI assets are auctioned monthly by the BD government therefore price discovery is very transparent
  • The BGFI asset class is already actively transacted by all commercial banks in Bangladesh, of which there are over 60

The BGFI yield curve has gradually been shifting downwards in the last couple of years. This is a result of falling inflation and relatively tight monetary policy. Going forward, it may be expected that the yield curve may continue to shift downwards due to excess savings within the domestic economy and potential demand from overseas.