Prime Bank Investment launches ‘Capital Connect’ to bridge industries with investment opportunities

Prime Bank Investment Limited (PBIL), a subsidiary of Prime Bank, has launched its flagship initiative, Capital Connect – a platform designed to bring together industry leaders, uncover actionable insights, and facilitate access to high-potential investment opportunities to boost market readiness.

The launching programme was held through a seminar titled "Capital Connect: PBIL–Industry Engagement," held in the capital on Monday (26 May).

Addressing the seminar, Syed M Omar Tayub, managing director and CEO of PBIL, said, "We inaugurated our flagship initiative with a focus on the pharmaceutical sector. Going forward, we plan to expand Capital Connect to include other key industries."

The event was attended by senior finance professionals from several leading non-listed pharmaceutical companies, including Incepta Pharma, Opsonin Pharma, Healthcare Pharma, LabAid Pharma, Team Pharma, General Pharma, Ziska Pharma, Eskayef Pharma, and Goodman Pharma.

In his keynote presentation, Tayub highlighted that Bangladesh's pharmaceutical sector is witnessing rapid growth, driven by robust domestic demand, favourable government policies and promising export potential.

He pointed out that the local pharma market is currently valued at approximately $3 billion and is growing at a rate of about 10% annually. By 2030, the market is projected to exceed $9 billion. Despite this growth, the country's pharma exports stand at only $205 million, compared to the global pharmaceutical market worth $1.6 trillion.

To compete globally and scale up production capacity, substantial funding will be necessary. However, relying solely on traditional bank loans is not sustainable, especially given the high interest rates, Tayub said.

He advocated for a financing mix that includes instruments like coupon bonds, zero-coupon bonds, convertible bonds, green bonds, and sukuk to reduce financing pressure and cost.

Despite these options, most companies still rely heavily on conventional bank loans, leading to increased interest burdens and financial stress, Tayub said.

Representatives from pharmaceutical companies echoed his views, noting that rising interest costs and a volatile exchange rate are putting pressure on their businesses.

They added that raising funds from the capital market is time-consuming and involves navigating complex compliance requirements. Moreover, entering the capital market brings additional tax burdens that are often difficult to manage. Therefore, they emphasised the need for legal and regulatory support to address these challenges.

Prime Bank Investment officials also showcased a range of their investment products designed to help pharmaceutical companies manage funds more efficiently and access alternative sources of capital.

A live poll conducted during the event revealed that bank loans remain the preferred financing method among participants, with bonds ranking second. When asked why equity financing remains unpopular, participants cited key challenges such as strict regulatory compliance, ownership dilution, high listing costs and market volatility.