Bangladesh considers forming up to $2 billion sovereign fund: FinMin
Bangladesh has sought stronger Korean investment in artificial intelligence (AI), infrastructure, advanced manufacturing and digital technologies, aiming to take bilateral economic cooperation beyond traditional concessional development financing.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury also share a plan in his visit in South Korea to create a sovereign fund of up to $2 billion mobilizing international capital to finance infrastructure, renewable energy and digital projects.
At a discussion with top officials of Korea Investment Corporation (KIC), Finance and Planning Minister discussed those issues in Seoul, according to a press release from the finance ministry.
The minister is currently in Seoul, leading a Bangladeshi delegation to expand bilateral economic and financial cooperation.
Seoul have agreed to further deepen their economic partnership, with greater emphasis on investment, advanced technology, artificial intelligence (AI), infrastructure, innovative financing and private-sector cooperation.
The proposed Bangladesh Sovereign Fund, with a potential size of $1 billion to $2 billion, was discussed as one possible investment vehicle.
The two sides also explored the potential for combining KIC equity investment with Korea Eximbank (KEXIM) financing, including through Korean fund managers, the statement also read.
In a separate meeting with KEXIM Chairman and Chief Executive Officer Hwang Kiyeon, the two sides reviewed the $3 billion Economic Development Cooperation Fund (EDCF) Framework Arrangement for 2023-2027.
Bangladesh planned to form a sovereign wealth fund in 2017 using its foreign currency reserves to invest in infrastructure and accelerate economic growth, but the plan was subsequently scrapped.
They discussed several priority projects including the southern route of Dhaka Metro Rail Line-5, the Matlab Uttar-Gazaria Bridge and the procurement of 260 broad-gauge passenger carriages,the statement added.
Bangladesh proposed a clear roadmap for the remaining EDCF resources and highlighted emerging areas such as AI, digital transformation, smart infrastructure and supply chains.
The official Korean export credit agency, KEXIM, noted that EDCF priorities are currently under review and indicated that project proposals would be considered in consultation with relevant Korean authorities.
The delegation engaged Korean companies on opportunities in energy, LNG, renewable energy, shipbuilding, advanced manufacturing, urban development and infrastructure, with an emphasis on moving towards long-term investment and PPP partnerships.
In discussions with Samsung C&T, Bangladesh explored cooperation in infrastructure, renewable energy, urban development, tourism and PPP projects, including rooftop and utility-scale solar and selected urban development opportunities. Samsung C&T expressed interest in expanding from EPC contracting into longer-term investment, and both sides agreed to continue technical discussions on priority projects.
At a Korean investment business roundtable organized by Youngone, Bangladesh highlighted opportunities in light engineering and component manufacturing and encouraged Korean companies to pursue joint ventures, technology transfer and integration of Bangladeshi suppliers into Korean value chains.
Meanwhile, at a separate meeting with Chang Huh, the second Vice Minister of South Korea’s Ministry of Finance and Economy, Amir Khosru called for elevating bilateral relations to a broader strategic level.
