Deutsche Bank has launched aXess Bangladesh an institutional platform that provides equity investors with synthetic access to the Dhaka Stock Exchange (DSE) via participatory notes or total return swaps.
The DSE was one of the world’s best-performing exchanges in 2007, achieving a positive return of 86.6%, compared to 37.7% for the MSCI Asia ex-Japan index. Since 2003, the DSE’s market capitalisation has increased nearly ten times, from $1.67 billion to $10.7 billion in 2007.
Despite recent global equity market volatility, the DSE has stayed relatively stable with the Dhaka General index to 2,882.8 points as at 27 January 2008 from 3,028.6 points on 26 December 2007, according to DSE figures.
Year-on-year GDP growth in 2007 is estimated to be 9.3% according to Government figures, however Deutsche Bank believes infrastructure investment is needed to ensure sustained economic development. Foreign equity participation, via platforms such as aXess Bangladesh, can provide a new source of capital that can be used to fund the country’s infrastructure needs.
aXess Bangladesh provides investors with zero strike call warrants, zero coupon equity-linked notes and equity swaps. aXess also provides exposure to nine other key Asian markets, within the given regulatory environment.