Assignment on

Activities & Services of Different Investment Banks in BD

Course Code: F-403

Course Name: Investment Banking & Lease Financing

Prepared For
Md. Tanvir Hasan
Assistant Professor
Department of Finance
University of Dhaka

Prepared By
Md. Alamin
ID: 25-125
Section: B
BBA 25th Batch
Department of finance

University of Dhaka
Investment Corporation of Bangladesh
Investment Organization of Bangladesh (ICB) is a People's Republic of Bangladesh government
company. It is an investment bank based in Bangladesh that was set up to help with
industrialization and the securities market. ICB is one of the biggest investors in Bangladesh. ICB
buys stocks, lends money, and manages, trustees, or holds mutual funds. Their products and
service offering are given below:

 Private equity and placement of shares: ICB invests in various enterprises through stock
participation, either alone or in cooperation with other banks and financial institutions.
 Margin Loan Accounts: Margin loans are available for the purchase of assets with
excellent fundamentals and promising prospects to decrease investment risk and
preserve investors' interests.
 Trustee and Custodian Service: ICB serves as trustee and custodian for debenture
issuance, mutual funds, and securitized bonds.
 Portfolio Management: At present, ICB manages five portfolios.
 Stock Market Operations: ICB partakes in stock market operations in form of investment
in preference shares, debenture financing, advance against equity, lease financing, and
bond investment.
 Margin Loan Accounts Managing.
 Corporate Financial Advice: ICB offers professional and financial advice on corporate
restructuring and reengineering to government enterprises looking to sell shares on the
capital market.
Risk Factors
 Credit Risk
 Market Risk
 Interest Rate Risk
 Liquidity Risk
 Equity Price Risk
 Operational Risk
 Green Financing Risk
 Money Laundering Risk

IDLC Securities
Since its start in 2006, IDLCSL has provided investors from all over the world with the highest
standards of ethics, research expertise, and customer service. Over the past eleven years, it has
grown to become the third-largest stock broker in the country by giving its clients top-notch
service. The Bangladesh Securities and Exchange Commission (BSEC) has given us permission to
act as a stock broker and stock dealer. IDLC Securities Limited has seats on both the Dhaka
Stock Exchange Limited and the Chittagong Stock Exchange Limited. It is known by most foreign
institutional investors, local institutions, and individual investors in Bangladesh. Their products
and service offering are given below:

 Initial Public Offering (IPO)

 Rights Issue Management
 Repeat Public Offering (RPO)
 Mergers & Acquisitions
 Corporate advisory
 Underwriting
 Arranging pre-IPO placement/ capital
 Raising of forthcoming IPOs
 Substantial share acquisition and take over
 Trustee and custodian services.
 Profit-loss sharing scheme.
 Capital protected scheme.

Risk Factors
Credit Risk Recovery Risk

 Default Risk  Checking procurement documents.

 Recovery Risk  Checking the personal net worth of
 Concentration Risk owners.
 Ensuring strong group support.
Market Risk
 Loan rescheduling and negotiation.
 Interest Rate Risk
 Litigation.
 Equity Price Risk
Concentration Risk
Liquidity Risk
 Maintain product cap as per credit
 Funding Liquidity Risk
policy.
 Market Liquidity Risk
 Maintain sectorial cap as per credit
Operational Risk
policy.
 People Risk  Maintaining exposure cap to a single
 Process Risk group as per credit policy.

Lanka Bangla Securities Limited

As the leader in capital market services, Lanka Bangla has spent a lot of time making sure that
Bangladesh has a productive, healthy, and open capital market. Its subsidiary Lanka Bangla
Securities Limited is the best in the business when it comes to trading, research, and customer
service. Sri Lanka Bangla has changed the way it does business so that it can provide better
customer service. Today, the business is run in a highly developed, centralized administrative
setting. Lanka Bangla Securities thinks that the key to its success is becoming the growing
partner of its customers who are looking to the future. Lanka Bangla wants to give people
power and start social change. Their products and service offering are given below:

 Lease financing, term financing, short-term financing, revolving financing, loan against TDR,
work under finance, club financing, and bridge financing for large and emerging
corporations.
 Factoring finance, distributor finance, and reverse factoring.
 Project finance, alternative models of capital raising, Islamic Shariah-compliant financing
solutions.
 Corporate Advisory services.
 Green/ sustainable finance.

Risk Factors
 Credit Risk  ICT Risk
 Market Risk  Reputation Risk
 Interest Rate Risk  Legal Risk
 Operational Risk  Competitor Risk
 Liquidity Risk
Eastern Bank Limited Securities
EBL Securities Limited (EBLSL) is a company that Eastern Bank Ltd. owns 100% of. After getting a
Stock Broker & Stock Dealer license from the Bangladesh Securities and Exchange Commission,
EBL Securities Ltd. is very busy trading securities for investors (BSEC). The business has TRECs
from both the Chittagong Stock Exchange Limited and the Dhaka Stock Exchange Limited. It
offers brokerage services through both the DSE and the CSE. The company also has a license to
be a Depository Participant (DP). EBL Securities Ltd. wants to be a top brokerage firm that helps
clients reach their financial goals through a wide range of services. This is done with the help of
its highly qualified and experienced staff. EBLSL offers a wide range of services to its well-known
business clients, private investors, and financial institutions. EBL Securities' operations and
services include:

 Trade execution in DSE and CSE.

 Pre-IPO private placement opportunities.
 Portfolio management.
 Opportunities for trading through different financial instruments
 One-on-one service through research team to understand portfolio allocation and buy-sell
decisions
 Margin loan facility at affordable interest rate
 NRBs can invest into the Bangladeshi Capital Market from anywhere in the world.

Risk Factors
Market Risk

 Various VaR limits, stress test results, equity, and debt investment exposures.
 Duration analysis.

Liquidity and Funding Risks

 Holding appropriate levels of high-quality liquid assets.

 Limiting the maximum net cash outflow within a period.
 Diversification of funding, depositors, instruments, and term.
Operational Risk

 Systematic identification, measurement, mitigation, and monitoring of operational risks.

 Minimization of residual operational risk.

BRAC EPL Stock Brokerage Limited

BRAC EPL Stock Brokerage Limited is one of the best brokerage firms in the country. It works as
a broker for foreign institutions, domestic institutions, individual customers, and Bangladeshis
who don't live in Bangladesh (NRBs). It was also the first to help foreign investors make
portfolio investments in Bangladesh, and it is still the leader in this area. The Equity Research
team is also one of the best in the country. On October 1, 2009, the Securities and Exchange
Commission gave a merchant bank license to the public limited company BRAC EPL Investments
Limited (BEIL). On the same day, a new group of business leaders took over. BEIL does and
offers the following:

 Debt arrangement BEIL.

 Mergers and acquisition.
 Private equity.
 Corporate advisory.

Risk Factors
 Credit Risk  Operational Risk
 Market Risk  Compliance Risk
 Interest Rate Risk  Reputation Risk
 Liquidity Risk  Money Laundering Risk
 Equity Price Risk