PRAN Agro Limited (PAL) has successfully issued first internationally guaranteed bond in Bangladesh.
The PAL achieved financial close of a landmark Tk 2,100 million (equivalent to $25 million) non-convertible, redeemable bond, with 100 percent on-demand credit guarantee from GuarantCo and fully subscribed by MetLife Bangladesh as of May 19, 2021.The 7-year fixed coupon bond is the first-ever instrument of its kind in Bangladesh and is expected to play a transformational role in supporting alternate source of infrastructure financing in Bangladesh, said a press release.
PAL, a member of PRAN-RFL Group, is one of Bangladesh’s largest corporates in the food and agricultural sector, working with 100,000 registered contract farmers and employing 110,000 people across the group.
The Bond proceeds will be used to develop critical infrastructure in the agricultural supply chain and support PAL’s expansion plans in the local and export markets.
As the sole investor of the bond, MetLife Bangladesh, the country’s leading life insurance company, has further demonstrated its commitment to funding needs for Bangladeshi companies.
The subscription will further diversify MetLife’s investment portfolio in Bangladesh.
The bond is backed by an on-demand guarantee by GuarantCo, part of the Private Infrastructure Development Group (PIDG), and funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s.Green Delta Company Limited acted as the bond Trustee and Security Agent to the issue.