A mobile phone operator raised $102m through Bangladesh?s biggest corporate bond deal, in another sign that the country?s capital markets are flickering back into life.

Orascom Telecom Bangladesh, a subsidiary of Egypt?s Orascom Telecom, smashed the previous record just four months after Grameenphone, its larger rival, sold shares for $71m in the country?s largest initial public offering.

The two deals, while small in global terms, are an indication that investors are becoming more confident in Bangladesh, a country identified by Goldman Sachs as one of the N-11 (?Next Eleven?) markets to watch in the 21st century.

?Investor confidence is coming back,? said Shams Zaman, of Citi Bangladesh, which arranged the deal. ?The Orascom bond shows that it?s possible to raise sizable amounts of financing from the local market.?

Other local companies are likely to sell bonds in the coming year, he added, from sectors including telecommunications, finance and pharmaceuticals.

Competition is heating up in Bangladesh?s telecoms sector ? in January, Bharti Airtel, the Indian telecoms group, bought 70 per cent of Bangladesh?s Warid Telecom for an initial investment of $300m.

That followed a high-profile IPO by Grameenphone, Bangladesh?s biggest telecoms company, which raised $71m from local retail investors and a further $70m from selling shares to the country?s institutions.
Nobel Prize winner Muhammad Yunus

Grameenphone is a joint venture between Norway?s Telenor and local microfinancier Grameen Bank, launched by Nobel Prize winner Muhammad Yunus.

Orascom Telecom Bangladesh, which trades under the name Banglalink, plans to use the proceeds of its bond sale to invest in network equipment and expand in rural Bangladesh.

The amortising senior secured bonds are denominated in the Bangladeshi taka. They have a 13.5 per cent coupon rate payable every six months and are due in 2014.

The size of the offering was increased from Tk4.25bn ($62m) to Tk7.1bn due to ?huge interest? from investors such as mutual funds, insurance companies and commercial banks, Mr Zaman said.

About Oracom
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Orascom Telecom Holding S.A.E. (?Orascom Telecom? or ?OTH?) was established in 1998 and has grown to become a major player in the global telecommunications market. OTH is considered among the largest and most diversified network operators in the Middle East, Africa, and South Asia. Orascom Telecom is a leading mobile telecommunications company operating in eleven emerging markets having a population under license of 498 million with an average mobile telephony penetration of approximately 46% as of December 31st, 2008. Orascom Telecom operates GSM networks in Algeria (“OTA”), Pakistan (“Mobilink”), Egypt (“Mobinil”), Tunisia (“Tunisiana”), Bangladesh (“Banglalink”), and North Korea (?Koryolink?). OTH has an indirect equity ownership in Globalive Wireless which has been granted a spectrum license in Canada. OTH was also awarded the management contract of one of the two Lebanese mobile telecommunications operators (“Alfa”) from the government of the Republic of Lebanon. Through its subsidiary Telecel Globe, OTH also operates in Burundi, the Central African Republic, Namibia and Zimbabwe. Orascom Telecom had over 88 million subscribers as of September, 2009.

OTH’s first operation was the Egyptian Company for Mobile Services commonly known as (?Mobinil?). Mobinil is a market leader serving over 24.2 million subscribers representing a market share of 43.6% (as of September 2009). Mobinil is one of Egypt’s five largest companies on Cairo & Alexandria Stock Exchange (?CASE?) in terms of market capitalization.

OTH witnessed success as Orascom Telecom Algeria SPA (?Djezzy?) was launched in February 2002. It grew to become the market leader in terms of both subscriber numbers as well as the quality of telecommunications services provided. Djezzy serves over 14.7 million subscribers on its network and has a 62.9% market share (as of September 2009).

Orascom Telecom Tunisie (?Tunisiana?) launched its services in December 2002, and serves over 4.8 million subscribers on its network with a growing market share of 53% (as of September 2009).

In Pakistan, the Pakistan Mobile communications Ltd (?Mobilink?) started its operations in 1994. In April 2001, OTH took over management control of the company. As the market leader, Mobilink serves over 30 million subscribers, representing a market share of 30.9% (as of September 2009).

In September 2004, OTH purchased 100% of Sheba Telecom (Pvt.) Limited in Bangladesh. OTH re-branded and launched its services as “Banglalink” in February 2005. Immediately after the launch, OTH started its aggressive plans to develop Banglalink into a leader in the mobile sector by rapidly expanding its GSM network to provide high quality communications services at affordable prices. Banglalink serves over 12.1 million subscribers with 24.2% market share (as of September 2009).

In the beginning of 2009 OTH has been awarded the management contract of Alfa, one of two Lebanese mobile telecommunications operator, owned by the Republic of Lebanon. The management contract extends for one year and is renewable for another year. Under this contract, OTH is required to increase the number of subscribers of Alfa from around 600 thousand at the end of 2008 to around 1 million at the end of 2009.

Koryolink is the first 3G mobile network to operate in the Democratic People’s Republic of Korea (?DPRK?) and is established as a joint venture between OTH (75%) and Korea Posts and Telecomm Corp. (KPTC) (25%). OTH was awarded the license to establish a 3G mobile network in DPRK in January 2008. Koryolink will deliver world-class voice and data communication services to the people of the DPRK.

OTH established a strong presence in the GSM Association (the world’s leading wireless industry representative body) only five years after its inception. OTH’s Chairman and CEO, Mr. Naguib Sawiris, was selected to join the GSM Association’s CEO Board in 2002. OTH is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is traded under the symbol (ORTEq.L, OTLD LI).

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Bangladesh share maket points goes up.A huge amount of new investment enter last few months with the upgrowing trend of the Market.

Analyst Worries , Investors also…but share maket has own carisma -addiction for not to leave till finally loose.A joint team of RAB and the Securities and Exchange Commission nabbed Mahbub Sarwar, also a prolific blogger, from his office at a private bank’s merchant banking operation late Wednesday.

Sarwar who runs a Facebook site with nearly 3000 members provided stock tips through the popular social networking platform and several blogs, will be charged with market manipulation and faces five years in jail, Farhad Ahmed, executive director of the SEC, told a press briefing.

“He charged a monthly fee of Tk 3000 from each of his member or a flat rate of Tk 25,000 per annum in exchange for advising clients on daily trading. His tips have proved to have impact on the market and influenced trading,” he said.

Under the country’s securities laws investment advising is legal, but the advisor has to take a licence and meet some requirements to run his operation.

“Sarwar did not have any licence to offer tips or provide portfolio management services to clients at home and abroad,” he said, adding his tips could trick thousands of people into buying certain shares on certain days.

The arrest came months after the SEC formed a probe body to investigate volley of rumours being spread daily from social networking sites on stock trading.

The SEC took help of the RAB to identify the criminals and have stopped several online sites exclusively used for advising retail investors.

RAB director Mohammad Sohel said around thousands of more people could have been acting on Sarwar’s tips for the last few months.

“This is the first case of stock trading related cyber crime in the country and it’s crime of a higher order. Sarwar is an internet savvy young man. His daily tips prompted thousands of investors to buy or sell some particular shares,” he said.

Ahmed said the tipster is also accused of running an unauthorised portfolio management services company — advising clients on which investments to make — for which he charged 20 percent of profits.

“We don’t know how much money he has made. But obviously it’s not a small amount,” said A.T.M Tarequzzaman, a SEC executive director who led the probe into the scam.

In his blog site, Sarwar claimed that his advice would help clients make double profit than the normal returns in the Dhaka Stock Exchange.

“Usually I make 10-15 percent profits on the invested money on a month basis (under the flat market scenario expected profit is five-seven percent),” he boasted in one of his blog sites, shoikatblog.blogspot.com

A client has to undergo certain dos and don’ts to become a member of his site. “You can’t share this service. That is you can’t disclose the buy/sale decisions to others,” he said, according to his blog.

“Fees and commission should be paid within three days of month end. You have to report me the trade details at the day end through e-mails,” he said.

Officials said there could be more tipsters like Sarwar operating in the shady world of Internet.

“We hope this arrest will send warnings to the people involved in such cyber crime that we are closely monitoring them. We’ll nab anyone found to have influenced the trading illegally through internet,” he said.

Ahmed said more investigation is going on and it would take time to determine whether any company insiders were involved in Sarwar’s scam.

Experts said the arrest and the extent of operation of the illegal websites proved that the DSE, the country’s biggest bourse, is vulnerable to manipulation by smart techies.

Regulators have struggled to stop a slew of online scams, publicly warning investors in January of a rogue Facebook group providing bogus tips.

Ahmed refused to comment on whether the online scams was partly to blame in the recent abnormal bull-run in the DSE.

The main index at the DSE has grown nearly 30 percent with some experts describing the market as a “ticking bomb” as series of attempts to cool the market this year have failed.

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