'Bond market to be stronger if more int'l guarantors join in'
Prime Minister's adviser on Private Industry and Investment Salman F Rahman has said that the country's bond market will be strong if more international guarantors come to the market.
"Bond market is a vibrant sector and alternative source for collecting long-term finance for entrepreneurs along with Bank. If more international guarantors come in the market, it will be strong and other companies will show interest to come here," he said. He praised PRAN for bringing a new era of alternative source of finance, said a press release.
Salman F Rahman said it while addressing a programme organized by PRAN recently through the virtual platform to celebrate the successful issuance of first BDT Bond with international guarantee in Bangladesh for PRAN.
Speakers on the occasion said that the bond market is a potential sector for collecting long-term finance for entrepreneurs and the alternative source of finance for private sector.
They said the success of PRAN Agro Ltd for collecting money through issuing bond is a milestone for bond market and more corporates will be eager to come here to meet its huge financing requirements following PRAN.
Recently PRAN Agro, a sister concern of PRAN-RFL Group, has successfully achieved a landmark of Taka 2,100 million (US$ 25 million) non-convertible, redeemable bond.
It is the first such bond guaranteed by GuarantCo and other international DFIs and is the first to be subscribed by an international insurance company. It is the first directly issued digitized bond under Private Placement of Debt Securities Rules.
The bond money will be used to develop critical infrastructure in the agricultural supply chain and support PRAN Agro's expansion plans in the local and export markets.
Professor Shibli Rubayat-Ul-Islam, Chairman of Bangladesh Securities and Exchange Commission (BSEC) said, "I am happy to give the approval of the bond. I hope, other companies will follow PRAN. We have introduced various bonds and trying to promote it. I'll urge Gurantco to engage more in the country's bond market."
Md. Sirazul Islam, Executive Chairman of Bangladesh Investment Development Authority (BIDA), said the initiative of PRAN Agro is an inspiration for other companies.
Robert Chatterton Dickson, British High Commissioner to Bangladesh said, "The UK is a long-term development partner for Bangladesh. The development of capital market is very important for economic development. Our investors will come to invest here if the market grows."
Ahsan Khan Chowdhury, Chairman and CEO of PRAN-RFL Group said, "Bond market is yet to develop completely in Bangladesh. But, BSEC is doing best for it. We hope, it will develop and entrepreneurs will come to meet its huge financing requirement."
Ahmed Jamal, Deputy Governor of Bangladesh Bank, Emily Bushby, Interim CEO at GuarantCo, Nishant Kumar, MD of Asia, Ala Uddin Ahmed, General Manager at Metlife Bangladesh were also present at the programme.
Uzma Chowdhury, Director (Corporate Finance) of PRAN moderated the programme.