Pran Agro gets FinanceAsia award for best bond deal in South Asia

Pran Agro Limited, a concern of the Pran-RFL Group, got the FinanceAsia Achievement Award 2023 for the best bond deal in South Asia.

"This is the first business firm from Bangladesh that has won the FinanceAsia award which is a matter of great joy for us," said Pran-RFL Group's Director Kamruzzaman Kamal.

Pran Agro won the award after competing with companies from countries like India, Pakistan and Sri Lanka, he added.

Pran Agro received the award for its Tk262 crore guaranteed eight-year fixed priced corporate bond. The UK-based GuarantCo is the bond's guarantor and Riverstone Capital issue manager.

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia.

FinanceAsia, founded in 1996, is a Hong Kong-based publication reporting on Asia's financial and capital markets through a daily website and monthly magazine. Its annual achievement awards cover three key categories - deal awards, house awards and regional deal awards.

The eight-year bond allowed Pran Agro to finance its infrastructure expansion plans, reads a press release. MetLife Bangladesh is the sole investor in this bond.

The bond proceeds will enable Pran Agro to finance the second part of its expansion plan to increase production capacity, to meet the growing demand in export markets. The project includes the construction of additional factory buildings and the acquisition of machinery for noodles, confectionery, culinary, cooking oil, and bakery products.

Layth Al-Falaki, CEO of GuarantCo, said in a bond closing event, "We are delighted to have closed our second transaction with Pran Agro which will further develop the country's bond market. In May 2021, we provided Pran Agro with a guarantee of a Tk2.1 billion onshore bond to attract domestic institutional capital from Bangladesh and support the company's expansion plans."