The bond is the very first of its kind guaranteed by GuarantCo and other international development finance institutions
Pran Agro, a sister concern of Pran-RFL Group, has successfully closed Tk210 crore or $25 million in a non-convertible and redeemable bond.
The bond is the very first of its kind guaranteed by GuarantCo and other international development finance institutions (DFIs).
Through the bond, Pran will develop critical infrastructure in the agricultural supply chain and support Pran Agro’s expansion plans in the local and export markets.
The bond is also uniquely subscribed by a global insurance company and the country’s first directly issued digitized bond under the Private Placement of Debt Securities Rules.
Pran secured the Bangladesh Securities and Exchange Commission's (BSEC) approval to issue the first-ever corporate bond with an international guarantee in September last year that would pay 8-10% interest.
The BSEC has introduced various new bonds and has been trying to promote them, according to its Chairman Professor Shibli Rubayat-Ul-Islam.
According to Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, the local bond market still requires a lot more development.
“The bond market is yet to develop completely in Bangladesh. But BSEC is doing its best. We hope it will develop and entrepreneurs will come to meet its huge financing requirement,” he said at a virtual program organized by Pran on Monday.
The bond market is a vibrant sector and an alternative source for collecting long-term finance for entrepreneurs and banks, said Salman F Rahman, private industry and investment adviser to the prime minister.
The success of Pran Agro in managing money through bonds is a milestone for the bond market, and more corporates will be eager to come here to meet their vast financing requirement following Pran, added Salman.
Sirajul Islam, executive chairman at Bangladesh Investment Development Authority (BIDA), also hoped that Pran’s move would motivate other businesses to collect long-term finance.