Pran Agro gets nod to issue Tk150cr bond

Pran Agro Ltd, one of the country's leading agro-processing companies, has received consent from the securities regulator to issue a Tk150 crore green bond to strengthen the capital and equity by complying with environmental balance.

It is a non-convertible, unsecured and coupon-bearing green bond, which has a coupon rate of 9%, read a press release issued by the Bangladesh Securities and Exchange Commission (BSEC).

The bond will be issued to investors through private placements at a face value of Tk10 lakh per unit, said the regulator which approved the bond at a meeting on Wednesday.

Standard Chartered Bank is working as the lead arranger of the bond and Green Delta Insurance Company Limited acts as its trustee.

Recently, the company has successfully issued a Tk210 crore bond. It will utilise the proceeds to strengthen its agro-processing infrastructure to develop a greater agricultural supply chain in the country.

This is a milestone for the growing bond market of the country as international life insurer Metlife has been the single investor of the taka-denominated bond for the first time here.

Also, the guarantee in US dollar terms, equivalent to $25 million, by international firm GuarantCo came with it for the first time here. Local investment banks Green Delta Capital and Riverstone Capital are the trustee and lead arranger of the bond respectively.

At the closing ceremony of Tk210 bond last month, speakers expressed optimism that bonds would increasingly cater to the financing needs of the growing Bangladeshi corporations.

At the programme, Salman F Rahman, private industry and investment advisor to the prime minister, had said a vibrant bond market is an alternative source of long-term finance for entrepreneurs.

He urged more corporations to issue bonds and also guarantors to come up with their support.

BSEC Chairman Professor Shibli Rubayat-Ul-Islam said, "I am happy to give the approval of the bond. I hope other companies will follow Pran.  We have introduced various bonds and are trying to promote it."

He urged GuarantCo to engage more in the country's bond market.

Md Sirazul Islam, executive chairman at the Bangladesh Investment Development Authority (Bida), said the initiative of Pran Agro is an inspiration for other companies.

"It will motivate other businesses to collect long-term finance. Bida is working to ease the process of doing business in the country," he added.

Ahsan Khan Chowdhury, chairman and chief executive officer of Pran-RFL Group, said, "The bond market is yet to develop completely in Bangladesh, but the BSEC is doing its best for it. We hope it will develop and entrepreneurs will come to meet its huge financing requirement."