Pran Agro issues internationally guaranteed Tk 210cr bond

Pran Agro has issued a non-convertible and redeemable relationship well worth Tk 210 crore, or perhaps equivalent of $25 million, with 100 % credit promise from a worldwide company, a first of its kind found in the country.

GuarantCo, a concern of Private Infrastructure Advancement Group (PIDG), has provided the credit warranty to the bond.

The governments of the UK, Switzerland, Australia, Sweden, Netherlands and France have financed GuarantCo.

MetLife Bangladesh subscribed the relationship on May 19, 2021, according to a press release issued by Pran-RFL Group yesterday.

The seven-year fixed coupon bond may be the first-ever instrument of its kind in Bangladesh and is likely to play a transformational role in helping alternate sources of infrastructure financing in Bangladesh.

Pran Agro, a member of the Pran-RFL Group, is one of Bangladesh's most significant corporations in the food and agricultural sector.

The group is running its farm-based business with 100,000 registered contract farmers, employing 110,000 persons overall.

The bond proceeds will be utilized to develop crucial infrastructure in the agricultural supply chain and support Pran Agro's expansion plans in the local and export markets.

MetLife Bangladesh, the sole investor of the relationship and the country's leading life insurance coverage company, has further demonstrated its commitment to the funding necessities for Bangladeshi companies.

The subscription will even more diversify MetLife's investment portfolio in Bangladesh.

Green Delta Business has acted as the trustee and reliability agent of the relationship.

Riverstone Capital, an unbiased merchant bank based in Bangladesh, features acted seeing as financial adviser to Pran Agro, which has also played a job in issuing the bond.

The bond issuance in addition has signified numerous landmarks in the country's financial sector as it may be the first blended finance organized bond.

It is the first example for the financial sector in which a global company has provided 100 per cent credit guarantee on-demand.

On top of that, a global insurance provider has committed to a bond for the very first time.