It seeks $100m in fresh Saudi equity.
Illustration: TBS
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Illustration: TBS
Highlights:
- Sabinco plans to invest $200 million across 10 sectors in Bangladesh
- Bangladesh seeks a matching $100 million equity contribution from Saudi Arabia
- Renewable energy, pharmaceuticals and agro-processing receive the largest proposed allocations
- Sabinco expects the investment to mobilise another $300–500 million in financing
- The plan projects assets reaching Tk8,520 crore and profits Tk282 crore by FY29
The Saudi-Bangladesh Industrial and Agricultural Investment Company (Sabinco) plans to invest $200 million in 10 sectors, including renewable energy, agro-processing, pharmaceuticals, electric vehicles and electronics, to support industrial and productive-sector projects in Bangladesh.
The investment plan hinges on fresh equity contributions from both governments, with Saudi Arabia yet to agree to provide its share.
The Bangladesh government has decided in principle to inject $100 million in fresh sovereign equity into Sabinco and has sought an equal contribution from Saudi Arabia to maintain the company’s 50:50 ownership structure.
In a letter dated 7 October, Finance Minister Amir Khosru Mahmud Chowdhury requested his Saudi counterpart Mohammed bin Abdullah Al-Jadaan to consider contributing the matching $100 million.
Infograph: TBS
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Infograph: TBS
If both governments agree, Sabinco’s paid-up capital will increase from $60 million to $260 million.
Md Maroof ur Rahman Mazumder, managing director of Sabinco, told TBS that the company has already invested in renewable energy and agriculture and plans to expand into energy, pharmaceuticals and agro-based industries.
“Our management has agreed in principle to increase the company’s capital. If the governments take the initiative to inject fresh capital, it will significantly enhance our investment capacity,” he said.
Solar, agro-processing and pharma get priority
According to Sabinco’s September 2026 strategic paper, renewable energy will receive the largest indicative allocation of $40 million, mainly for utility-scale and captive solar projects.
Another $20 million is earmarked for green and climate finance, including effluent treatment plants, zero-liquid-discharge facilities, energy efficiency and industrial upgrades.
The pharmaceutical and active pharmaceutical ingredient (API) sector is proposed to receive $30 million, while another $30 million is planned for agro-processing and food industries, including grain storage, dairy, poultry, fisheries and cold-chain infrastructure.
The remaining $80 million will be distributed among electric vehicles and batteries ($16 million), electronics and semiconductors ($16 million), medical and healthcare infrastructure ($14 million), leather and leather goods ($12 million), jute and diversified products ($12 million), and paper, packaging and recycling ($10 million).
The allocations are indicative, with final project selection subject to investment appraisal, credit assessment, legal requirements and environmental and social safeguards.
The paper identifies solar power as a priority amid rising industrial electricity demand and Bangladesh’s dependence on imported fossil fuels.
Agro-processing investments are expected to strengthen food storage and supply chains, while pharmaceutical funding will support domestic API production and potential regional partnerships, including with Saudi companies.
Saudi investors targeted
The finance minister’s letter highlighted opportunities for Saudi investment in Bangladesh’s renewable energy, food processing, pharmaceutical and manufacturing sectors.
The strategic paper presents a strengthened Sabinco as a local financing and co-investment partner for Saudi companies, linking the proposed investments with Saudi Vision 2030.
It identifies potential areas of engagement with ACWA Power in renewable energy, Almarai in food and dairy, and SABIC in industrial manufacturing.
Sabinco also expects the proposed $200 million equity injection to mobilise an additional $300–500 million in concessional financing from multilateral and Arab development institutions.
The paper proposes exploring a joint sovereign guarantee or counter-guarantee framework, subject to approval from both governments and relevant financing institutions.
Assets projected to reach Tk8,520 crore by 2029
The strategic plan projects Sabinco’s total assets will grow from Tk1,014.2 crore in FY26 to Tk8,520 crore in FY29, while annual net profit after tax is expected to rise from Tk37.8 crore to Tk282 crore.
It also targets an investment portfolio exceeding Tk7,500 crore by 2030.
These are indicative projections, not guaranteed outcomes. They assume the fresh equity will be injected in two annual tranches during FY27 and FY28, with each government contributing $50 million a year.
The company proposes distributing 25% of annual net profit after tax as dividends, shared equally between the two governments, subject to financial performance and board and shareholder decisions.
Under the projections, annual dividends could reach Tk70.5 crore by FY2029, giving each government around Tk35.2 crore.
The expansion, however, remains contingent on Saudi Arabia agreeing to the matching equity contribution, the timing of capital injections and the feasibility of proposed projects.
Sabinco will also need to maintain financial discipline as its investment portfolio expands.
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