The government plans to issue Tk 5,000 crore in bonds to settle unpaid debts to private power producers, pending finance ministry approval. A BPDB official stated that all processes are complete, with several banks involved in the issuance. This move aims to ease financial pressure on independent power producers (IPPs), as BPDB owes around Tk 42,000 crore in total, including Tk 7,000 crore to IPPs. Previous efforts to stabilize the power sector included issuing Tk 20,620 crore in special bonds. The new bonds will feature an 8% coupon rate linked to the Bangladesh Bank’s repo rate and a maximum tenure of 10 years. Key companies like Summit Power and United Power are expected to benefit, and the finance division plans further agreements with banks to address sector liabilities.
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