Bond market to be strong if more int’l guarantors come in market: Salman

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DHAKA, June 15, 2021 (BSS) – Prime Minister’s Private Industry and Investment Affairs Adviser Salman F Rahman has said that the country’s bond market will be strong if more international guarantors come in 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. Thanks to PRAN because it brings new era of alternative source of finance,” he said.

The adviser said this while addressing a programme organized by PRAN yesterday afternoon through virtual platform to celebrate the successful issuance of first BDT Bond with international guarantee in Bangladesh for PRAN.

The speakers at the programme 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 bond is a milestone for bond market and more corporates will be eager to come here to meet its huge financing requirements following PRAN, said a press release today.

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 or other international DFIs, the first to be subscribed by an international insurance company and the country’s first directly issued digitized bond under Private Placement of Debt Securities Rules.

The bond 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. “It will motivate other businesses for collecting long -term finance. BIDA is working to improve the ease of doing business index in the country,” he added.

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 at 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.